Why is the SBI Share Price Rising?

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As per the recent share price, SBI is trading at ₹975.50, up 0.25% from the previous day’s close. The stock has performed strongly, with a 4.09% return over the last three days. The SBI is near its 52-week high and has outperformed the BSE500 index, supported by strong lending practices and increased investor confidence. Over the past year, the stock has returned 16.46%, significantly outperforming the BSE500 index, which has declined 1.39%. The company’s strong lending practices, led by a low Gross NPA ratio of 1.95%, and a healthy net profit growth rate of 45.59% annually, contribute positively to its stock performance. 

SBI’s short-term stock performance is expected to be higher.  With an ROI of 1, it has an Expensive valuation with a P/B of 1.7%; the stock is trading at a fair value compared to its peers’ average historical valuations. However, over six months, the SBI rose 19.20%, and it gained 6,327.44% over the overall period. The company has reflected long-term fundamentals, with an average Return on Equity (ROE) of 14.49%, and healthy growth rates in net sales and operating profit. 

Key Reasons for the Rise in the SBI Share Price?

There are several reasons for the rise in the SBI share Price, including stake sales in Yes Bank, easing lending norms, rising Q2 FY26 earnings, Improved Credit Demand, Consistent Profitability, asset-quality recovery, and Year-to-date gains.  

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• Stake Sales in Yes Bank: SBI’s share rose due to the bank completing the sale of its 13.18% stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation for ₹88.89 bn. SBI’s board approved this significant divestment, with the transfer completed on 17th September. 
• 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 to encourage banks to take on larger exposures to big corporates. 
•  Rising Q2 FY26 Earning Results: The bank reported a net profit of ₹20,160 crores for Q2FY26, registering a growth of 9.97% YoY compared to ₹18,331 crores in Q2FY25. Operating profit for the quarter increased by 8.91% YoY to ₹31,904 crores. The bank’s Return on Assets (ROA) and Return on Equity (ROE) for the half year stood at 1.15% and 20.21% respectively. 
• Improved Credit Demand: SBI has implemented multiple policy measures, including RBI rate adjustments and GST reductions, which have particularly boosted urban consumption, thereby raising SBI’s share price and maintaining its long-term operational efficiency. 
• Consistent Profitability: Net profit growth and healthy net interest income make the stock attractive and lead investors to invest in SBI shares, which have consistently risen in price.   
• Asset Quality Recovery: A decline in gross and net NPAs supports confidence in loan management, leading many people to trust the SBI loan scheme and invest confidently and safely. This also supports a rise in share prices in the near future, contributing to long-term growth and stability. 
• Year-to-date gains: SBI has gained 25% so far in 2025, marking the fifth consecutive year of positive returns. This is also the main reason for SBI’s share price rise in the near future and is a way to invest in the PSU bank’s shares.     

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SBI: An Overview

State Bank of India (SBI) is an Indian multinational public sector bank and financial services statutory body, and it is the largest bank in India with a 23% market share by assets and a 25% share of the total loan and deposits market. It is also the tenth-largest employer in India, with nearly 250,000 employees. As of 2024, SBI has 500 million customers. SBI provides a range of banking products through its network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). SBI has 17 regional hubs known as local in important cities throughout India, under which are furthermore administrative sub-offices known as regional business offices (RBOs). 

The total revenue of the SBI is ₹5.24 trillion, with the operating income of ₹1.10 trillion and net income of ₹709.01 billion, and the total assets are ₹66.76 trillion. As of September 2025, the SBI group had 63,580 ATMs and 82,900 BC outlets. As of 30th September 2025, the Government of India held 55.50% equity shares of SBI, which are listed on the Bombay Stock Exchange and is a constituent of the Nifty 50.  

SBI: Share Price Performance

SBI’s stock has been on a sustained rise since last August, gaining momentum after the release of strong Q2FY26 results. The bank’s net profit rose 10% YoY to ₹20,160 crores, supported by a 12.73% YoY growth in the loan book to ₹44.2 lakh crores. The net interest income also increased from ₹1,13,871 crore in Q2FY25 to ₹1,19,654 crores, while the net interest margin stabilised at 3.09%, improving QoQ despite a slight contraction YoY. Asset quality continued to improve, with gross NPAs declining to 1.73% and net NPAs to 0.42%, highlighting stronger loan recovery and reduced bad loans. 

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SBI: Share Price Target

State Bank of India’s share price target is ₹1012.31 on average. The consensus estimate represents an upside of 6.27% from the last price of 952.60. The 46 analysts offering a 1-year price forecast have a maximum estimate of ₹1,232.00 and a minimum estimate of ₹720.00. Investment in State Bank of India (SBI) on INDmoney has grown by 8.52% over the past 30 days, indicating increased transactional activity.SBIN has increased dividends consistently over the last 5 years, and the current yield is 1.57%. An investment of ₹1,000 in the stock is expected to generate a dividend of ₹15.70 every year. 

SBI: Analysts’ Rating

•  Consensus among many analysts remains positive “ Buy/Outperform/Overweight. 
• Some analysts are more cautious: a portion recommend “Hold/Neutral/Hold-to-Buy.
• A tiny minority have a “Sell/Underperform” view.
• The analyst’s sentiment is mixed; there have been recent bullish calls (ICICI, JM), but also cautious ones (Motilal Oswal, Nuvama).

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Is SBI a Good Stock to Buy?

In recent years, SBI has made significant strides in expanding its services, including Partnerships, Insurance Stake Adjustments, and Overseas Expansion. The SBI remains a dominant force in the banking industry, with its expansive reach, diverse product offerings, and robust financial health. As it navigates the challenges of the modern banking landscape, SBI remains committed to innovation and customer satisfaction while maintaining its legacy as India’s premier public sector bank. Investors may invest in SBI shares after evaluating all the developments mentioned above.   

SBI has also collaborated with companies like Amazon and PayPal to enhance its digital payment solution. It has also made adjustments to stakeholdings in SBI Life Insurance following regulatory changes, and SBI is committed to contributing positively to society through various CSR initiatives. The bank focuses on education, healthcare, rural development, and environmental sustainability projects. 

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SBI: Future Predictions By Analysts 

According to some analysts and statistical models, if current market and earnings trends persist, the projected average share price by mid-year could be around ₹956.00. In contrast, the average share price by year-end could reach approximately ₹1012.31. These figures are indicative and may shift with changes in interest rates, product sales, or broader equity-market sentiment. SBI is forecast to grow earnings and revenue by 2.5% and 4.00%, respectively, per annum. EPS is expected to grow at a rate of 6.2% per annum. Return on equity is forecast at 15.10% over the next 3 years.

Note: For live SBI Share Price Target, visit the univest app and check the stock fundamentals.

What is the Right Time to Buy SBI’s Shares?

According to analysts, SBI’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in SBI. There are some factors to consider before investing in SBI Company shares.

• Strong Fundamentals: Investors should review SBI Company’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.    
• Financing Partnerships: Financing partnerships bridge the gap between customers and financial institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.   
• Growth in the Technical Sector: The company is well-positioned in the electronic demat sector to deliver benefits to SBI. This dominant sector increases demand and prices for SBI.
• Highly Volatile: Prices are highly volatile, leading to significant price changes that substantially affect SBI Company’s stock price. Investors must review the market structure before investing in SBI Company shares. 

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Conclusion

SBI has been reporting substantial numbers over the past few years. Most banks, particularly PSU banks, have reported significant increases in net profits and net interest margins, along with improved 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. Over the last month, the share price of SBI has gained almost 4%, moving from ₹830 to ₹862. Over the past year, the company’s shares have gained 9%. 

FAQs

What are the key reasons for SBI’s share price rise?

Ans. There are several reasons for the rise in the SBI share Price, including stake sales in Yes Bank, easing lending norms, rising Q2 FY26 earnings, Improved Credit Demand, Consistent Profitability, asset-quality recovery, and Year-to-date gains. A decline in gross and net NPAs supports confidence in loan management, leading many people to trust the SBI loan scheme and invest with confidence and safety.    

What should investors do next for the SBI’s share price?

Ans. The bank’s healthy loan growth, a more substantial revenue income, and stable asset quality remain key positives, and analysts believe that there’s more to come. Domestic brokerage firm Axis Securities has a buy rating and believes that SBI remains well-positioned to sustain its growth momentum, with no visible concerns on either the growth or asset quality front. 

What are the key factors that affect the SBI’s share price?

Ans. According to analysts, SBI’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in SBI. There are some factors to consider before investing in SBI Company shares. The company is well-positioned in the electronic demat sector to deliver benefits to SBI. This dominant sector increases demand and prices for SBI.

What is the SBI’s share price target?

Ans. State Bank of India’s share price target is ₹1012.31 on average. The consensus estimate represents an upside of 6.27% from the last price of 952.60. The 46 analysts offering a 1-year price forecast have a maximum estimate of ₹1,232.00 and a minimum estimate of ₹720.00. Investment in State Bank of India (SBI) on INDmoney has grown by 8.52% over the past 30 days, indicating increased transactional activity.  

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