SBI Share Price Target 2025: PSU Bank Stock Soars After Rs 20,000 Crore Bond Plan—Should You Buy Now?

Shares of State Bank of India (SBI) rose nearly 2% on Wednesday after the country’s largest lender announced plans to raise substantial funds through bonds. In a meeting held on July 16, 2025, the bank’s Central Board approved raising up to Rs 20,000 crore by issuing Basel III-compliant Additional Tier 1 and Tier 2 bonds during FY2026.

The funds will be raised in Indian rupees from domestic investors and will help strengthen the bank’s capital base. The proposal is subject to approvals from the Government of India, where required.

SBI QIP

This fresh capital raising follows another plan announced in May 2025, when SBI’s board sanctioned the raising of up to Rs 25,000 crore in equity capital in FY2026.

This equity would be raised through one or more tranches using Qualified Institutional Placement (QIP), Follow-On Public Offer (FPO), or other methods, aiming to improve SBI’s Common Equity Tier 1 (CET1) ratio, which is a key measure of financial strength.

SBI Share Price Target 2025

According to Trendlyne, State Bank of India (SBI) has a BUY recommendation from 42 analysts, who have set an average share price target of Rs 929.31, indicating a possible 12% upside from the current levels. The stock also has a valuation score of 57, which suggests it is affordably priced.

A high valuation score means the stock is trading at reasonable valuations based on its P/E and P/BV ratios and may still have strengths not fully reflected in its share price. Among its peers, SBI has the third-highest valuation score, just behind Bank of Baroda, which has a score of 66.

SBI shares are currently trading above their 50-day and 200-day simple moving averages, which stand at Rs 801 and Rs 789, respectively. This is often seen as a positive technical indicator. The stock’s price-to-earnings (P/E) ratio is 9.6, and it has spent only 21.2% of the time below this level, putting it in the PE Buy Zone.

This means there is potential upside, as the P/E could revert to its historical average.

SBI Share Price History

In terms of recent performance, SBI’s share price has risen 2.55% over the past week, 2.26% over two weeks, and 4.88% in the past month. Over longer periods, the gains have been stronger, with a 7.75% rise in three months and an 8.50% increase over six months.

Over the past year, however, the stock has declined by 5.60%. Over the longer term, SBI has delivered robust returns, gaining 42.28% in two years, 73.60% in three years, 346.59% in five years, and 206.00% over ten years.

The stock has traded between a 52-week high of Rs 898.80 and a low of Rs 679.65. SBI has a large market capitalisation of Rs 7,41,903.66 crore and is part of the BSE SENSEX index, making it one of India’s biggest and most closely tracked companies.

Also Read: ITC Hotels Share Price: Stock Zooms 7% After 54% Jump In Q1 FY26 Net

SBI Q4 Results 2025

State Bank of India (SBI) reported a 10% drop in standalone net profit to Rs 18,643 crore for the fourth quarter ended March 2025, compared to Rs 20,698 crore in the same period last year. However, total income rose to Rs 1,43,876 crore from Rs 1,28,412 crore a year ago, with interest income increasing to Rs 1,19,666 crore.

The bank’s asset quality improved, as gross NPAs fell to 1.82% from 2.24%, and net NPAs eased to 0.47% from 0.57%. On a consolidated basis, net profit declined 8% to Rs 19,600 crore, while total income grew to Rs 1,79,562 crore. For the full year 2024–25, SBI’s standalone profit rose 16% to Rs 70,901 crore, up from Rs 61,077 crore in the previous year.

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