The State Bank of India (SBI) is focused on maintaining a net interest margin (NIM) above 3% in FY27, leveraging the growth of retail and micro, small, and medium enterprises (MSME) loans. As of March 2026, SBI's NIM fell to 2.93%, down from 3.11% in the previous quarter and 3.14% year-on-year. This decline is attributed to slower growth in current account savings account (CASA) deposits, which dropped to 39.5% of total deposits, compared to 40% a year ago. The bank is increasingly relying on higher-cost term deposits, which grew 11.9% to ₹34.7 lakh crore. In contrast, retail and MSME loans, collectively referred to as RAM, grew 17% in FY26, outpacing corporate loans that increased by 14.8%. Analysts suggest that a higher share of retail loans could boost fee income, especially as treasury income has been impacted by rising bond yields. Motilal Oswal Financial Services has adjusted its earnings estimates for SBI downwards by 3% for FY27 and 5% for FY28, while maintaining a 'Buy' rating with a target price of ₹1,300, indicating a 28% upside from the current stock price of ₹1,019.