The State Bank of India (SBI) has released its annual report for the financial year 2025-26 (FY26), highlighting significant improvements in asset quality, capital position, and operational efficiency. Analysts from Motilal Oswal Financial Services (MOFSL) have reaffirmed their 'Buy' rating on SBI, setting a target price of ₹1,300, indicating a potential upside of 35%. SBI's gross non-performing asset (GNPA) ratio has improved to 1.49%, with a net NPA of 0.39% and a provision coverage ratio of 74.4%. The bank's strong capital position is underlined by a Tier-I capital ratio of 13.1%. Additionally, SBI's deposit base grew by 11% year-on-year, with a CASA ratio around 40%. The bank's subsidiaries, particularly SBI Mutual Fund, continue to contribute significantly to its valuation, highlighting a robust operational framework. While MOFSL anticipates a moderation in earnings growth, projecting an 8% CAGR until FY28, the overall outlook for SBI remains positive, with expected profits reaching ₹92,500 crore.