CLSA backs India's SBI on renewables, data centre lending push; flags monsoon risk

State Bank Of India

25/06/2026 05:22

** Brokerage CLSA highlights State Bank of India SBI.NS strategic focus on corporate lending in renewable energy, data centers, engineering goods
    ** Notes bank's margins unlikely to be hit significantly due to banking system liquidity improvement from RBI's recent FCNR(B) deposit boost
    ** Expects no impact on asset quality from Iran war; says bank is confident in FY27 credit cost guidance of 50 bps 
** Flags management's concern about below average monsoons due to El Niño hampering rural demand
** Reiterates "outperform" rating, 1,275 rupees PT, says bank remains top pick in banking sector
** Stock rated "Buy" on average by 37 analysts; median PT at 1,200 rupees - LSEG-compiled data
** SBI up 1.6% at 1,050.8 rupees vs Nifty Bank .NSEBANK index 0.5% rise     
** YTD, SBI up 6.1% vs sub-index down 2%

 (Reporting by Mridula Kumar in Bengaluru)
 ((Mridula.Kumar@thomsonreuters.com;))