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With a 17% upside from the CMP, we maintain a BUY rating on the stock.

We maintain our BUY recommendation on the stock.

We maintain our BUY recommendation on the stock.

Healthy credit growth driven by secured segments; deposits growth led by healthy growth in CASA deposits

PAT beat our estimates by 5% mainly aided by govt-guaranteed SRs; return ratios stay steady with RoA/RoE of 1.1/17.3% in FY25

Sales +3% above Bloomberg 4QFY25 consensus/our est. EBITDA was in line with cons. and 1% above our est

Net Interest Income (NII) for Q4FY25 increased by 2.7% YoY (+3.2% QoQ) to INR 4,27,746 Mn, in-line with our estimates. PPOP grew by 8.8% YoY (+32.8% QoQ) to INR 3,12,860 Mn., 16.2% above our estimates driven by supported by ~2x QoQ growth in non-interest income.

SBI saw a decent quarter; while core PPoP beat PLe by 11.3% due to better fees and TWO recoveries, asset quality was soft as provisions were higher at 66bps (PLe 25bps) since (1) write-offs/ageing provisions were more and (2) strong TWO recovery and SR reversal (Rs39bn) provided leeway to front load credit costs. Credit growth is guided to be above system in FY26E; we are factoring a 12% CAGR over FY25-27E. Opex for FY25 was flat at Rs1.18trn due to 9.7% decline in staff cost. For FY26, bank has guided a cost to income of 50-51% with...

GM&A share at 22.6% for FY25 down by 40bps vs 23% in 9MFY25 We cut FY26/FY27 EPS estimates by 2.4/1.6% (earlier est lower by 11/14% than consensus) as we expect margin pressure to continue due to 1) sustained high competitive intensity led by consumer shift to Ecom/QC 2) accelerated store openings in a scenario of subdued demand, softer GM, higher spending on consumer service and rising store level/gig worker wages in metros. D'Mart 4Q results missed estimates as fierce competitive intensity impacted Gross...