Jefferies retains 'buy' on India's SBI; flags loan repricing strength
BUZZ-Jefferies retains 'buy' on India's SBI; flags loan repricing strength ** Jefferies says State Bank of India's SBI.NS annual report highlights loan repricing particularly in corporate loans as key to maintaining margins amid quicker deposit repricing
** Maintains "Buy", TP unchanged at 1,300 rupees; SBI remains among Jefferies top picks
** Asset quality is strong and bank may spread one-time expected credit loss provision impact over FY28–32, with a modest drag on profits - brokerage
** Jefferies estimates a 45 bps credit cost in FY28, where every 5 bps increase could cut profits by about 2%
** Adds loan growth robust at ~17% y/y, led by corporates; loan-to-deposit ratio at multi-year highs, with reduced reliance on priority-sector lending
** Thirty six analysts have a "buy" rating on avg; median PT is 1,200 rupees - data compiled by LSEG
** SBI up as much as 1.7%; YTD, up 3.6%
(Reporting by Urvi Dugar in Bengaluru)
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