Synopsis:
State Bank of India and RBL Bank Ltd are in focus after Citi has assigned a new target price with a Buy rating.
Citi recommends two banks as good investment opportunities. Both are expected to see growth in loans, stable profits, and improved operations. One is strong among public banks, while the other is growing in retail and commercial lending, giving investors balanced exposure.
Following are the list of stocks:
1. State Bank of India
Citi has maintained its ‘Buy’ rating on the stock with the target price of Rs. 1,050, with an upside of 21.21 percent from CMP of Rs. 866.30. Citi expects SBI loan growth YoY at 13-14 percent, NIMs of 2.8–2.9 percent, and stable credit cost of 40–45 bps. It forecasts ROA at 1 percent and ROE at 14–15 percent over FY26–27, making SBI its top PSU bank pick.
State Bank of India (SBI), founded in 1806 and headquartered in Mumbai, is a leading Indian bank offering a wide range of banking and financial services domestically and internationally.
Its operations span Treasury, Corporate/Wholesale Banking, Retail Banking, and other segments. SBI provides personal banking services like savings and deposit accounts, various loans, debit and credit cards, mutual funds, insurance, and digital banking.
For corporates, it offers accounts, term loans, project finance, structured finance, cash management, trade services, and overseas financing. Additionally, SBI provides NRI banking, agricultural banking, international banking, insurance, asset and portfolio management, merchant banking, advisory, securities broking, and payment solutions.
With the market capitalization of Rs. 7,99,879.17 crore, the shares of State Bank of India trading at Rs. 866.30, up by 0.02 percent from its previous day’s close price of Rs. 866.20 per equity share.
In Q1 FY26, the company reported net interest income of Rs. 41,072 down by 3.98 percent from Q4 FY25 of Rs. 42,775 and 0.13 percent from Rs. 41,125 in Q1 FY25. Profit rose to Rs. 19,160 cr, a 12.48 percent YoY increase over Rs. 17,035 cr in Q1 FY25, and 2.78 percent QoQ from Rs. 18,643 cr in Q4 FY25.
Also Read: Bulk Deal: Stock under ₹100 in focus after promoter offloads 1.54% stake worth ₹1.61 Cr
2. RBL Bank Ltd
Citi has maintained its ‘Buy’ rating on the stock with the target price of Rs. 300, with an upside of 9.47 percent from CMP of Rs. 274.05. Citi noted that NIMs have bottomed out and should improve from Q2.
Loan growth is accelerating in secured retail and commercial banking, while MFI disbursements now exceed repayments, easing portfolio concerns. Stress in JLG has reduced, though credit cards are normalizing slowly. Core fee income is gaining momentum, and cost control measures are expected to show results from Q3.
RBL Bank Limited, incorporated in 1943 and headquartered in Mumbai, is a scheduled commercial bank in India offering a wide range of banking and financial services. Operating through Corporate/Wholesale Banking, Retail Banking, Treasury, and other segments, it provides savings, current, salary, and specialized accounts; deposits; loans including personal, business, housing, agri, and micro-enterprise; insurance and investment products; Demat accounts; and digital banking services.
For corporates, it offers corporate finance, investment banking, project and structured finance, cash management, trade and supply chain services, and treasury solutions. RBL Bank also provides agribusiness, NRI, and preferred banking services through its network of branches, business correspondent branches, and ATMs.
With the market capitalization of Rs. 16,793.70 crore, the shares of RBL Bank Ltd is trading at Rs. 274.05, up by 1.37 percent from its previous day’s close price of Rs. 270.35 per equity share.
In Q1 FY26, the company reported net interest income of Rs. 1,481 down by 5 percent from Q4 FY25 of Rs. 1,563 and 13 percent from Rs. 1,700 in Q1 FY25. Profit rose to Rs. 200 cr, a 46 percent YoY decrease over Rs. 372 cr in Q1 FY25, but a 192 percent increase QoQ from Rs. 69 cr in Q4 FY25.
Written by Akshay Sanghavi
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