Shares of India’s largest lender, State Bank of India (SBI), were trading flat on Tuesday, November 4, ahead of the announcement of second-quarter results. The banking stock fell by less than 1 per cent to ₹944.05 on the NSE.
The multibagger PSU stock has been trading in the green in the near term, having gained nearly 20 per cent in six months and 14 per cent in a year.
In fact, SBI shares have more than doubled investors’ money by soaring over 331 per cent in five years.
SBI Q2 results 2025 preview
Several brokerages expect that SBI’s earnings growth will largely remain flat for the September 2025 quarter, given the strong performance in the same period last year.
Axis Securities projects a year-on-year (YoY) rise of 12 per cent in advances and 9 per cent in deposits for the bank.
However, the brokerage cautioned that margin pressures may impact overall performance, potentially leading to muted growth in net interest income (NII). SBI’s NII is estimated at ₹40,499 crore — a decline of 3 per cent YoY and 1.4 per cent quarter-on-quarter (QoQ).
“Margin pressures to be visible, dampening NII growth. Capex growth to be controlled; lower treasury gains would hurt PPOP growth. Credit costs to normalise, Slippages likely to be under control, no challenges visible on asset quality,” the brokerage firm said in a note.
Motilal Oswal Financial Services (MOFSL) analysts also anticipate a largely flat quarter for SBI. They estimate net interest income (NII) at ₹40,580 crore, down 2.5 per cent YoY, pre-provision operating profit (PPOP) at ₹26,940 crore, down 8 per cent YoY, and net profit at ₹16,730 crore, marking a 9 per cent decline YoY.
Loan growth is expected to be around 11.6 per cent YoY, while deposits may rise by 9 per cent. Asset quality is likely to remain stable, with the gross non-performing asset (GNPA) ratio unchanged at 1.8 per cent and the net NPA (NNPA) steady at 0.5 per cent.
SBI share price: Should you buy or sell?
According to Anuj Gupta, Director, Ya Wealth Research & Advisory, the trend for SBI stock is positive as prices are forming a higher top and higher bottom pattern, and witnessing higher volumes.
“Now, it has strong support at 920 and then 890 levels; resistance is at 970 and then 1000 levels. Further price momentum depends on the upcoming results. Technically, the trend for SBI shares is looking positive,” Gupta said.
Anshul Jain, Head of Research at Lakshmishree, believes that the breakout structure remains robust, and both the cup and handle, as well as the fresh ATH breakout, indicate a target of 1000, which looks achievable in the coming sessions.
“Momentum indicators are aligned positively, suggesting sustained bullish strength. Any positive earnings surprise could further accelerate the move, taking the stock toward 1050 levels. The overall setup reflects strong institutional participation and continuation of the prevailing uptrend,” Jain said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
