Why SBI Share Price is Rising

Today, 19 September, the Indian stock market paused its recent winning streak and declined.

At the time of writing, the BSE Sensex had dropped about 475 points or 0.5%, trading around 82,540, and the NSE Nifty 50 had slipped about 0.5% points.

Major laggards were ICICI Bank, Titan, Nestle India, and UltraTech Cement, while some PSU banks and pharma shares were showing gains.

SBI's shares have been rallying for the last couple of days.

Let's tell you about some reasons for the same.

2 Reasons Why SBI's Share Price is Rising

#1 Stake Sales in Yes Bank

State Bank of India's shares rose due to the bank completing the sale of its 13.18% stake in Yes Bank to Japan's Sumitomo Mitsui Banking Corporation for Rs 88.89 bn.

This large divestment was approved by SBI's board and regulatory authorities, with the transfer completed on 17 September. The sale will boost SBI's Q2 FY26 bottom line through proceeds likely to enhance treasury income.

#2 Easing of Lending Norms

According to a report in the Economic Times, the government is in talks with the Reserve Bank of India (RBI) to ease norms and regulations so that banks take larger exposures to big corporates.

This is a part of a wider initiative to push infrastructure finance. Under the existing norms, loans become costlier in case the overall banking exposure to a corporate exceeds Rs 100 bn.

This development too helped pushed the stock price of SBI higher.

What Next for SBI?

SBI has been reporting a strong set of numbers over the last few years. Most banks, particularly PSU banks have reported a good increase in net profits and net interest margins, along with improving asset quality.

State Bank of India has reaffirmed its growth targets of 12% loan growth and 10% deposit growth in the coming financial year, reflecting confidence in expanding its lending and deposit base.

SBI's comfortable loan-to-deposit ratio (LDR) and strong deposit franchise, particularly the focus on CASA deposits, provide levers to accelerate credit growth.

The bank's net interest margins (NIMs) are expected to remain broadly stable despite some pressure from rate cuts, supported by its mix of MCLR-linked and fixed-rate loans.

The bank is expected to benefit from India's robust GDP growth outlook of around 6-6.5% in FY25 and FY26, which supports credit demand and financial sector growth.

While SBI may face some near-term pressure on its net interest margins, the overall outlook for the bank remains positive. Its strong capital base, comfortable loan-to-deposit ratio, and stable asset quality position it well for sustained growth.

How Shares of SBI have Performed Recently

Over the last one month, the share price of SBI has gained almost 4% moving from levels of Rs 830 to the current levels of Rs 862. In the past one year, shares of the company have gained 9%.

The stock hit a 52-week high of Rs 875.5 on 6 December 2024. The stock also hit a 52-week low of Rs 679.65 on 3 March 2025.

About SBI

SBI is the largest public sector bank in India. It's recognised as a systemically important bank by the Reserve Bank of India and also ranks among the top banks worldwide-47th in total assets and 178th in the Fortune Global 500 list for 2024.

SBI offers a broad range of banking and financial products including retail, corporate, investment banking, insurance, and asset management through various subsidiaries like SBI Life Insurance, SBI Mutual Fund, and SBI Card.

To know more, check SBI fact sheet and latest quarterly results. You can also compare SBI with its peers on our website.

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Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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