Street View- India's SBI rises as brokerages flag margin recovery, strong loan growth

** State Bank of India SBI.NS reported 14.3% rise in Q2 profit to 230.38 billion rupees ($2.43 billion), aided by strong loan growth and a one-time stake-sale gain of 72.88 billion rupees

** Shares of India's largest lender rise 1.04% to 981.80 rupees

BROKERAGES SEE FURTHER MARGIN UPSIDE

** Citi ("buy", TP: 1,300 rupees) says stronger-than-expected NIM expansion could continue as interest rates rise; raises FY27 earnings forecast by 4%

** CLSA ("outperform", TP: 1,325 rupees) sees robust margins and improving asset quality; raises FY27-FY29 profit estimates by 1%-2%

** Jefferies ("buy", TP: 1,320 rupees) says adjusted core operating profit grew 21% y/y despite upfront expenses; raises FY27-FY29 earnings estimates by 1%-2%

** Emkay Global ("buy", TP: 1,350 rupees) says focus on profitable lending and cheaper deposits supports margins despite elevated expenses

** Systematix ("buy", TP: 1,200 rupees, cut from 1,220 rupees) sees further margin upside from lower funding costs and loan repricing

($1 = 94.7400 Indian rupees)