The proposal under consideration includes raising funds through a public offer or a private placement mode. The instruments may be issued to overseas and/or domestic investors in Indian rupees and/or foreign currency.
Last week, global brokerage Jefferies reiterated its positive view on SBI. Jefferies has a “Buy” rating on SBI with a price target of ₹1,300 per share, implying a potential upside of around 30% from current levels.
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The brokerage said sustaining net interest margins (NIMs) will largely depend on the bank’s ability to reprice its corporate loan book. According to its asset repricing analysis, deposits are likely to mature faster than assets, which could result in quicker repricing of deposits and put pressure on margins.
Despite this, Jefferies remains constructive on SBI’s outlook, citing the bank’s consistent improvement in deposits per branch, lower reliance on priority sector lending certificates (PSLCs), growing fee income from bancassurance partnerships and limited buffer provisions.
The brokerage highlighted the transition to the expected credit loss (ECL) framework as a potential risk factor, although it does not see it materially altering the broader investment thesis.
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Jefferies expects SBI’s loan book to grow at a compound annual rate of 13% and forecasts a return on equity (ROE) of 14% over the medium term. The brokerage also finds the valuation attractive, noting that the stock trades at 1.4 times its FY27 adjusted book value.
According to Bloomberg consensus data, 49 analysts currently track SBI. Of these, 43 have a “Buy” recommendation, while the remaining six have a “Hold” rating.
Shares of State Bank of India ended at ₹1,020.45, up by ₹3.55, or 0.35%, on the BSE.
Also Read: SBI reports highest-ever quarterly profit; asset quality improves and advances grow 15%
