Motilal Oswal Recommends 'Buy' on SBI, Sets Target at INR 1300

• State Bank of India (SBIN) reported a 25% YoY growth in 3QFY26 PAT, reaching INR 210.3 billion, beating estimates by 18%.
• The strong performance was driven by higher other income and lower-than-expected provisions, including INR 22 billion in dividend income from SBIMF.
• SBIN's 3QFY26 PAT beat exceeded the combined profits of all private banks under Motilal Oswal's coverage, excluding the top four large private banks.
• Motilal Oswal increased earnings estimates for FY27/28E by 3%/4.3%, projecting FY27E RoA/RoE at 1.1%/15.9%.
• The brokerage reiterates a 'BUY' rating with a revised target price of INR 1,300, based on 1.4x FY28E ABV plus INR 354 for subsidiaries.