Foreign brokerage UBS has upped rating on State Bank of India (SBI) to ‘Neutral’ from ‘Sell’, as it sees risk-reward balanced. Sustaining of net interest margin (NIM) is key for the stock’s re-rating going ahead, the brokerage said.

The SBI stock trades at 1 time September 2026 price to book value and at 20 per cent premium to Bank of Baroda (BOB). UBS suggested a fresh target price of Rs 840 on the PSU bank from Rs 760 earlier, hinting at a potential 8 per cent upside from Thursday’s closing price of Rs 779.90 on BSE.

To be sure, SBI has underperformed Bank Nifty by 7 percentage points over the last year. Still, the Street might be pricing in higher than system growth, UBS said adding that the capital raise remains an overhang….