State Bank of India (SBI) shares took a breather on Thursday, 27 November 2025, slipping modestly after touching fresh record highs earlier in the week. Even as the stock eased, management commentary around capital strength, bond-raising plans and margins kept investor interest firmly focused on India’s largest lender.
Key highlights for SBI stock today (27 November 2025)
- Share price: Around ₹971–972 per share in afternoon trade, down roughly 1.2–1.3% from the previous close near ₹984 on BSE/NSE. [1]
- Market cap: About ₹8.9 lakh crore, keeping SBI among India’s most valuable financial institutions. [2]
- Day’s range:₹968.9 (low) to ₹988.55 (high), indicating intraday volatility after record levels. [3]
- 52-week & all‑time high: Around ₹999–999.10, hit on 26 November 2025, with a 52‑week low of about ₹679.65 on 3 March 2025. [4]
- Returns: Approx. +5% over 1 month, +20% over 3 months, +16–17% over 1 year, and nearly +300% over 5 years, far outpacing the broader indices. [5]
- Valuation: Trading at roughly 11x trailing earnings and 1.7–1.8x book value, with a dividend yield around 1.6%. [6]
- Fresh news today: Chairman C S Setty reiterated that SBI is unlikely to need fresh equity for about six years, backed by a ₹25,000 crore QIP and strong profitability, while planning a ₹12,500 crore Tier II bond issue. [7]
SBI share price today: Mild dip after a powerful rally
As of around 2:53 pm IST on Thursday, SBI shares were quoted at ₹971.10 on the BSE, down about 1.32% from the previous close of ₹984.05. On the NSE, the stock was hovering near ₹972 with a similar percentage decline. [8]
Trading volumes were healthy, with close to 9 lakh shares changing hands on BSE by mid‑afternoon and over 1 crore shares on NSE indicating active participation despite the pullback. [9]
The move came against a relatively flat market backdrop. By 3 pm, the Sensex was up just 0.03% at 85,635.66, while the Nifty 50 was marginally lower at 26,189.4, down about 0.06%. The Nifty PSU Bank index was down around 0.85%, indicating some profit‑taking across state‑run banks after their recent surge. [10]
In other words, SBI’s decline today looks more like a pause after an extended run rather than a sharp reversal.
From fresh highs to consolidation: SBI’s recent price action
SBI’s current softness must be seen in the context of a remarkable uptrend over the past few months:
- On 25 November 2025, SBI shares hit a new high of about ₹988.95 on the NSE, gaining roughly 2% intraday, as PSU banks attracted strong buying interest. [11]
- A day later, on 26 November, the Nifty PSU Bank index climbed to a record 8,665.7, and SBI pushed on to a new peak close to ₹999–999.10, which now stands as both its 52‑week and all‑time high. [12]
According to data from major market portals, SBI has delivered roughly: [13]
- ~5% gain in the last month
- ~20% gain over the last 3 months
- ~60% return over 3 years
- About 298–300% total return over 5 years
Such a steep multi‑year re‑rating, combined with fresh lifetime highs this week, naturally sets the stage for short‑term consolidation, which is what today’s modest decline appears to reflect.
Capital comfort: No equity dilution for six years, ₹12,500 crore bonds planned
The most important fundamental news flow on 27 November 2025 revolves around SBI’s capital strategy.
In a detailed interaction highlighted today, Chairman C S Setty reiterated that: [14]
- The ₹25,000 crore equity capital raised through a qualified institutional placement (QIP) earlier in 2025 is expected to support about ₹12 trillion (₹12 lakh crore) of incremental credit growth.
- This fund‑raise, along with internal accruals, should help SBI maintain a capital adequacy ratio (CAR) near 15% and CET‑1 around 12% over the next 5–6 years.
- As a result, SBI does not expect to need any fresh equity capital for roughly six years, sharply lowering the risk of dilution for existing shareholders.
In addition, Setty flagged a planned issue of about ₹12,500 crore in Tier II bonds, which will largely replace maturing paper and form part of the bank’s routine capital management. [15]
Importantly for margin watchers, he also indicated that SBI expects to maintain its net interest margin (NIM) guidance of around 3%, even if the RBI cuts the repo rate by 25 basis points in the upcoming 5 December policy meeting. The bank is counting on: [16]
- The full benefit of the 1 percentage point CRR cut,
- Repricing of high‑cost fixed deposits, and
- A 0.2 percentage point cut in savings account rates,
to cushion any pressure on margins.
For equity investors, this combination of strong capital buffers, limited dilution risk and NIM resilience is a key part of the bullish narrative around SBI, even as near‑term rate cuts remain a talking point for the sector.
Q2 FY26 results: Profit growth supported by Yes Bank stake sale, asset quality strengthens
SBI’s latest set of numbers, for the September quarter (Q2 FY26), continues to underpin the stock’s medium‑term story.
According to the Q2 results released earlier this month: [17]
- Net profit rose around 10% year‑on‑year to roughly ₹20,160 crore, helped by gains from the partial sale of the bank’s stake in Yes Bank.
- Net interest income (NII) grew about 3.3% year‑on‑year to nearly ₹42,985 crore.
- Operating profit increased by around 8.9% year‑on‑year to about ₹31,904 crore.
- Asset quality improved further:
- Gross NPA ratio eased to roughly 1.73% from 1.83%,
- Net NPA ratio declined to about 0.42% from 0.47%, and
- The absolute level of NPAs fell both at the gross and net level.
The quarter also featured some one‑off capital gains:
- SBI sold about 13.18% of its Yes Bank stake at ₹21.50 per share, generating a profit of around ₹4,593 crore, which is being transferred to capital reserves. The stake now stands near 10.78%. [18]
On the flip side, domestic NIM compressed to around 3.09%, down from 3.27% a year earlier, reflecting higher funding costs and the lagged impact of deposit repricing. [19]
Overall, the Q2 picture is of a bank that is growing its loan book double‑digit, improving asset quality, and delivering profit growth, albeit with modest NII expansion and margin pressure—precisely the dynamics management is trying to address with its funding strategy and rate‑sensitivity management.
Ownership structure: Government‑led, but institutions are big players too
Fresh analysis published today by Simply Wall St shines light on who actually owns SBI. [20]
Key ownership details:
- State/government shareholders hold about 56% of SBI, with The Republic of India owning roughly 55%, making the government the dominant shareholder.
- Institutional investors (domestic and foreign) own around 31% of the company, signifying strong participation from mutual funds, insurance companies and foreign portfolio investors.
- The general public—mostly retail investors—holds close to 13%.
- Insiders and board members own less than 1% of the stock (by value, around ₹34 crore at current prices), which is not unusual for a very large PSU bank. [21]
Separately, Business Standard data show that promoter holding has nudged down from about 56.92% in March 2025 to 55.03% in September 2025, suggesting incremental stake sales or dilution by the government over recent quarters. [22]
For investors, this structure means SBI is:
- Strategically anchored by the sovereign,
- Heavily influenced by institutional flows, and
- Only partly driven by retail sentiment, given the relatively small direct public float.
Valuation and analyst sentiment: Consensus still leans “Buy”
Despite the big rally, SBI’s valuation remains relatively moderate compared with some private‑sector peers:
- Price‑to‑earnings (P/E): about 11x trailing 12‑month earnings.
- Price‑to‑book (P/B): around 1.7–1.8x.
- Dividend yield: roughly 1.6%, based on recent payouts. [23]
On the analyst front, the tone is broadly constructive:
- The Economic Times’ analyst tracker shows 38 analysts covering the stock, with around 17 rating it “Strong Buy” and 15 rating it “Buy”, versus 5 “Hold” and just 1 “Sell”. [24]
- Recent brokerage research compiled by Business Standard includes “Buy” ratings from houses such as Motilal Oswal (target around ₹1,075), Axis Securities, and others, reflecting expectations of further upside driven by earnings growth and improving return ratios. [25]
- At the same time, some brokerages remain more cautious, maintaining “Hold” on SBI due to concerns about margin progression and the sustainability of non‑core income, even as they remain positive on PSU banks as a group. [26]
In short, Street consensus is still skewed towards “Buy”, but with an increasing focus on whether current valuations adequately discount margin risk and the exceptional gains booked in recent quarters.
Long‑term performance: A multi‑year compounder, but expectations may need tempering
A fresh editorial from Equitymaster today highlights just how far SBI has come over the last five years: [27]
- An investor who bought 100 SBI shares at around ₹248 on 1 December 2020 (investment ~₹24,800) would now be looking at a holding valued at roughly ₹99,000, excluding dividends—translating into a compound annual growth rate (CAGR) of about 32%.
- Over the same period, SBI’s financials show steady growth in net interest income, a sharp fall in net NPAs, and robust profit expansion, with FY25 consolidated PAT above ₹77,000 crore and net NPA ratios below 0.5%. [28]
The same analysis, however, cautions that it may be “over‑optimistic” to expect similar high returns in the next leg, even though the bank is still structurally well‑placed for long‑term growth.
That aligns with the current set‑up: SBI has already rerated from being a deeply discounted PSU lender to a core holding in many institutional portfolios, which naturally raises the bar for future performance.
Key factors to watch for SBI investors
Looking beyond today’s price action, a few triggers are likely to shape sentiment on SBI in the weeks and months ahead:
- RBI policy decision on 5 December
- Markets are watching whether the Monetary Policy Committee (MPC) delivers a widely‑anticipated 25 bps rate cut.
- An earlier cut could mildly pressure bank NIMs in the short run, but SBI’s management believes its low share of repo‑linked assets (around 30%), CRR relief and deposit repricing should keep NIMs near the 3% mark. [29]
- Loan and deposit growth trends
- With India’s GDP expected by SBI to grow around 7% in FY26, the bank is targeting low‑teens credit growth, supported by retail, SME and infrastructure lending. [30]
- Sustained outperformance in advances, without a spike in NPAs, would support earnings and justify current valuations.
- Margins and funding costs
- How quickly high‑cost deposits roll off and are replaced by cheaper funding will be critical for NIM trends.
- Any aggressive rate competition for deposits could offset the tailwinds from CRR cuts and savings rate tweaks.
- Subsidiary monetisation and strategic initiatives
- Brokerages point out that SBI is exploring value unlocking from key arms such as SBI Mutual Fund and SBI General Insurance, alongside new initiatives like SBI Ventures’ planned ₹2,000 crore climate‑tech fund, which is slated for launch in early 2026. [31]
- Regulatory and macro environment
- Changes in regulatory capital rules, PSU bank policies, or stress in specific lending segments could influence valuation multiples.
- On the positive side, PSU banks are regaining home‑loan market share and benefiting from cleaner balance sheets, which has driven the Nifty PSU Bank index up about 27% over the past three months, outpacing the Nifty 50. [32]
Bottom line
On 27 November 2025, SBI’s share price is taking a breather, trading a little over 1% lower after setting fresh record highs near ₹1,000 earlier this week. The short‑term pullback comes against a backdrop of:
- Strong multi‑year returns and improving asset quality,
- Comfortable capital ratios, with no equity dilution expected for six years,
- A planned ₹12,500 crore bond issue, and
- Broadly positive but increasingly nuanced analyst sentiment as valuations move closer to long‑term averages.
For readers and investors tracking SBI, the stock today looks less like a story of collapse and more like a textbook consolidation at the top of a powerful uptrend—with upcoming RBI decisions, margin trends and capital‑allocation moves likely to decide whether the next big move is another breakout or a longer pause.
References
1. www.business-standard.com, 2. www.business-standard.com, 3. www.business-standard.com, 4. www.business-standard.com, 5. economictimes.indiatimes.com, 6. economictimes.indiatimes.com, 7. www.angelone.in, 8. www.business-standard.com, 9. www.business-standard.com, 10. www.business-standard.com, 11. www.business-standard.com, 12. www.business-standard.com, 13. economictimes.indiatimes.com, 14. www.angelone.in, 15. www.angelone.in, 16. www.angelone.in, 17. www.moneycontrol.com, 18. www.moneycontrol.com, 19. www.moneycontrol.com, 20. simplywall.st, 21. simplywall.st, 22. www.business-standard.com, 23. economictimes.indiatimes.com, 24. economictimes.indiatimes.com, 25. www.business-standard.com, 26. www.business-standard.com, 27. www.equitymaster.com, 28. economictimes.indiatimes.com, 29. economictimes.indiatimes.com, 30. www.angelone.in, 31. www.business-standard.com, 32. www.business-standard.com
