Investor sentiment remains positive. According to the latest stock pattern, foreign institutional investors (FIIs) increased their holdings to 9.57% in the September quarter, compared to 9.33% in the previous quarter. Domestic institutional investors (DIIs) followed suit, increasing their stake from 25.69% to 27.65%. Interestingly, SBI’s promoter position fell from 57.42% to 55.50%, indicating institutions are taking a stronger position in the stock.Brokerage ICICI Securities has reiterated its bullish stance on SBI and maintained a ‘Buy’ rating with an unchanged price target of Rs 1,150 per share – an upside potential of around 20% from current levels. The company values SBI’s core businesses for FY27E at roughly 1.5 times book value.
At the ICICI Securities India Conference 2025, management reaffirmed SBI’s commitment to scale with discipline, with an emphasis on steady and prudent growth. The bank’s net interest margin (NIM) improved quarter-on-quarter and is expected to continue its trajectory barring sharp interest rate movements. Core fee revenue showed robust 25% year-over-year growth in Q2 2026, strengthening overall profitability.
Analysts highlighted that SBI’s performance in loans, NIM, fee income and asset quality compared favorably to peers during the quarter. While potential stress in the loan portfolio remains a key risk, sustained operational efficiencies and disciplined credit expansion continue to drive optimism for the banking giant.
Price, valuation and technical outlook
SBI’s share price is currently around Rs 958, which is close to its 52-week high of Rs 971.40. The bank’s market capitalization is approximately Rs 8.86 lakh crore, reflecting its position as one of India’s largest financial institutions.
From a valuation perspective, SBI is trading at a price-to-earnings (P/E) ratio of 10.9, which indicates how much investors are willing to pay for each rupee of profit. The price-to-book ratio (P/B) of 1.69 suggests the stock is worth about 1.7 times its book value, which is typical of a large, stable bank stock.
On the technical side, the 14-day Relative Strength Index (RSI) stands at 71.6. Since an RSI above 70 typically indicates an overbought condition, the stock may experience a pullback or consolidation in the short term.
Moreover, SBI mainly trades eight major Simple Moving Averages (SMAs) – from the 5-day to the 200-day SMA. This alignment of price above any major moving average reflects a strong bullish trend and continued buying momentum.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times)
#FIIs #DIIs #placing #big #bets #State #Bank #India #Analysts #expect #rally