SBI shares rose 1% to ₹863.50 on Friday, marking their highest level in 2025. The sale of YES Bank stake, robust credit growth, and brokerage 'Buy' ratings boosted investor confidence. The bank is close to its all-time high of ₹912.10.
SBI Stock: Shares of State Bank of India (SBI) showed strength in the market on Friday. On the BSE, the stock climbed 1 percent to ₹863.50. This marks SBI's highest level in 2025. Despite weakness in other stocks, SBI offered relief to its investors. The bank is now trading close to its all-time high of ₹912.10, which it touched on June 6, 2024.
YES Bank Stake Sale Boosts SBI Share Price
The primary reason for the recent surge in SBI shares is the sale of its 13.18 percent stake in YES Bank. The bank sold 4.13 billion shares to Japan's SMBC for ₹8,889 crore, with each share priced at ₹21.50. Following this deal, SBI's stake in YES Bank has reduced to approximately 10.8 percent. SBI's Executive Committee approved this sale in May. SMBC has also obtained all necessary approvals from the RBI and the Competition Commission of India.
According to ICICI Securities, this deal has increased SBI's book value by approximately 2-3 percent. This impact is also reflected in the share price. Investors view this growth as a sign of the bank's b financial position.
Credit and Loan Environment
The government and RBI are considering easing banking regulations. The objective is to make more loans available to large corporates and promote infrastructure financing. SBI's management expects overall credit growth to be around 12 percent, driven by b demand for project financing and an increase in mortgage loans in the second half of FY26.
According to Emkay Global Financial Services, margins might slightly decrease. However, the benefits of CRR and deposit rate cuts will become apparent in H2FY26. The bank's stable asset quality and lower credit costs will also contribute to this growth.
Brokerage Views on SBI Stock
ICICI Securities has given a 'Buy' rating to SBI shares, setting a target price of ₹975. Axis Securities has also issued a 'Buy' rating, with a target price of ₹1,025 based on SOTP (Sum of the Parts) valuation.
According to brokerage opinions, SBI's b loan-to-deposit ratio and control over expenses will help it maintain strength in the long term. The bank's asset quality is good, and credit costs are expected to remain low. The recent QIP has strengthened Tier I capital, which will be instrumental in ensuring the bank's growth in the medium term.
