UBS on SBI
Risk-reward balanced; Upgrade to Neutral from Sell , Raise Target Price to Rs 840 (from Rs760)
Tax rebate in the budget and likely implementation of eighth pay commission recommendations are incrementally positive for SBI customers.
Expect limited risk to NIM as we expect decline in cost of deposits (c5.1% in Q3) in FY26-27E and a higher MCLR proportion (c40%) to support in a rate cut cycle.
Risk-reward balanced; Upgrade to Neutral from Sell , Raise Target Price to Rs 840 (from Rs760)
Tax rebate in the budget and likely implementation of eighth pay commission recommendations are incrementally positive for SBI customers.
Expect limited risk to NIM as we expect decline in cost of deposits (c5.1% in Q3) in FY26-27E and a higher MCLR proportion (c40%) to support in a rate cut cycle.
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