The share price of State Bank of India (SBI) will be in focus on Friday, as there is buzz that the PSU bank may consider opting for Rs 25,000 crore worth of share sale, as part of its fundraising plan. The speculation emerged after SBI announced its board meeting scheduled on July 16.
SBI Share Sale:
Sources familiar with the matter told Reuters that SBI is preparing to sell as much as Rs 250 billion ($2.9 billion) of shares to institutional investors as early as next week. The plans haven't been finalised and are subject to change, the report said.
SBI is yet to make any official statement on the matter. Hence, GoodReturns.In could not confirm the same.
SBI Board Meeting:
In its regulatory filing, on July 10, SBI announced that a meeting of the Central Board of State Bank of India is scheduled to be held on Wednesday, 16th July 2025, inter alia, to consider and seek approval for raising funds during FY26 by way of issuance of Basel III compliant capital bonds in INR.
Earlier, in May month, SBI's Executive Committee approved to examine the status and decide on long term fund raising in single / multiple tranches of up to US$ 3 Billion (US$ Three Billion) under Reg-S/144A, through a public offer and/or private placement of senior unsecured notes in US Dollar or any other major foreign currency during FY 2025-26.
SBI Share Price:
On July 10th, after market hours, SBI stock price stood at Rs 808 apiece, down by 0.4% with market cap of Rs 7,21,109.30 crore. The stock is near its 52-week high of Rs 898.80 apiece.
Last month, brokerage Motilal Oswal highlighted that State Bank of India (SBIN)'s FY25 annual report highlights that the bank has steadily strengthened its balance sheet and consistently delivered healthy RoE while maintaining its leadership position. The Retail segment reported a 49% growth in PBT whereas treasury reported a 9% increase to INR176b. SBIN has delivered an earnings CAGR of 37% over past four years and crossed a key milestone of INR700b of profits in FY25.
Meanwhile, SBIN's loan book grew 12% YoY in FY25, with modest growth in Xpress credit which has affected bank's NIMs slightly besides the rise in funding costs. Consequently, the NIM dipped 30bp during FY25 to 3.0% (3.15% in domestic business).
"We estimate a 6% earnings CAGR over FY25-27, with an RoA/RoE of ~1.0%/15.9% in FY27. We maintain SBIN as our top BUY idea amongst PSU Banks with a TP of INR925 (premised on 1.2x FY27E ABV+ INR245 for subsidiaries)," said Motilal's note.
State Bank of India (SBI) a Fortune 500 company, is an Indian Multinational, Public Sector Banking and Financial services statutory body headquartered in Mumbai. The bank serves over 50 crore customers through our vast network of over 22,500 branches, 63,580 ATMs/ADWMs, 82,900 BC outlets.
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