SBI stock hits highest level in CY-2025 on QIP plan; more upside ahead?

SBI stock trades at 2025 high: Bank remains well-poised to sustain its growth momentum, supported by its comfortable LDR, which provides it with levers to accelerate credit growth, say analysts

State Bank of India (SBI) share price today

 

Shares of State Bank of India (SBI) were up 1 per cent at ₹840.35 on the BSE in Thursday's intra-day trade after the state-owned lender launched a share sale to institutional investors to raise upto ₹25,000 crore.

 

The stock price of public sector bank was trading higher for the fourth straight day, gaining 4 per cent during the period. SBI shares traded at their highest level in calendar year 2025 (CY25), surpassing the previous current year high of ₹835.40 touched on April 22, 2025.

 

However, thus far in the CY25, SBI has underperformed the market, by gaining 5 per cent, as compared to 5.3 per cent rise in the BSE Sensex.

 

 

At 09:46 AM; SBI was quoting 0.14 per cent higher at ₹832.70, as against 0.10 per cent decline in the benchmark index.  READ STOCK MARKET UPDATES LIVE 

SBI launches ₹ 25,000 crore QIP issue

 

SBI, the largest lender in the country, has launched a share sale to institutional investors to raise upto ₹25,000 crore, the biggest qualified institutional placement (QIP) so far by an Indian firm, and has set a floor price of ₹811.05, which is at a 2.5 per cent discount on Wednesday's closing price. Separately, the bank’s board approved another ₹20,000 crore fund raise by issuing bonds.

 

Life Insurance Corporation, Singapore’s GIC, Capital International, and ICICI Prudential AMC are some of the investors in the share sale, Business Standard reported quoting investment-banking sources. CLICK HERE FOR FULL STORY

 

SBI in Preliminary Placement Document said the Bank intends to utilize the net Proceeds towards augmentation of Bank’s TierI capital base to meet Bank’s future capital requirements and to support growth plans and to enhance the business of the Bank.  ALSO READ | 7 reasons why IIFL Securities is bullish on SBI stock over Bank of Baroda

Indian Economy

 

The Reserve Bank of India (RBI) has projected the real GDP to grow at 6.5 per cent in 2025-2026, same as in 2024-2025, supported by buoyant rural demand, revival in urban demand, an uptick in investment activity on the back of above-average capacity utilisation, government’s continued thrust on capex and congenial financial conditions. The continued momentum in various high frequency indicators of services sector, robust agricultural production and above normal southwest monsoon forecasts, and strong goods and services tax (GST) collections underscore the sustained momentum and resilience of the economy.

 

The soundness and resilience of Scheduled Commercial Banks (SCBs) are bolstered by robust capital buffers, multi-decadal low non-performing loans and strong earnings. The Indian financial sector remained strong and resilient amidst global headwinds. SCBs continued to record improvement in their asset quality, with the gross non-performing asset (GNPA) ratio and net non performing asset (NNPA) ratio declining to multi-decadal lows of 2.3 per cent and 0.5 per cent, respectively, SBI said in Preliminary Placement Document.  ALSO READ | Godrej Properties shares up 2% on acquiring land parcel in Raipur; details

Axis Securities view on SBI

 

SBI remains well-poised to sustain its growth momentum, supported by its comfortable loan-to-deposit ratio (LDR), which provides it with levers to accelerate credit growth. With a bulk of its loan book either being MCLR-linked or Fixed rate, the impact of yield repricing would be with a lag, instilling confidence in the management to protect NIMs at ~3 per cent.  Analysts at Axis Securities believe SBI could continue to deliver a sustainable RoA of 1 per cent over the medium term, supported by healthy growth visibility across segments, strengthening deposit franchise with focus on CASA deposits, ramping up the fee income profile, and controlled Opex and steady provisions.  Meanwhile, those at Motilal Oswal Financial Services believe the bank is well-positioned for sustainable credit growth supported by robust underwriting and a potential corporate capex recovery.  "SBI has delivered a robust set of performances in recent years, propelled by steady business and revenue growth as well as controlled provisions. NIM has contracted in recent quarters, and the management has guided for broadly stable margins (negative bias depending on the quantum and timing of rate cuts). The bank has levers in place (CD ratio, MCLR re-pricing, asset mix improvement, etc.) to mitigate the impact arising from moderation in lending yields," they said in a recent report.   SBI stock is Motilal Oswal's preferred pick within the PSU Bank space. It has a 'Buy' rating on the stock with a share price target of ₹925.   Analysts at IIFL Capital, too, prefer SBI among PSBs, betting on its steady market share, superior asset quality, increased digital push, and better loan mix. The brokerage has a 'Buy' rating with a target price of ₹930 per share.