SBI Shares Hit 52-Week High After YES Bank Stake Sale: Is It a Buy?

State Bank of India (SBI) shares surged 1% on Wednesday, hitting a 52-week high as PSU banks rallied on Dalal Street. The stock opened at Rs 875.20 and climbed to Rs 880.40, closing above the previous day’s Rs 870.50.

The uptick comes after SBI completed the sale of a 13.18% stake in YES Bank—equivalent to 4,130 million shares—to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for Rs 8,889 crore at Rs 21.5 per share. Regulatory approvals were granted by the RBI on August 22, 2025, and the Competition Commission of India on September 2, 2025. Post-sale, SBI’s holding in YES Bank stands at 10.8%.

Market Impact
Following the stake sale, SBI regained a market capitalization above Rs 8 trillion, joining a select group of Indian companies surpassing this milestone, including Reliance Industries, HDFC Bank, Bharti Airtel, TCS, and ICICI Bank.

Valuation and Performance Outlook
Brokerages estimate the stake sale will boost SBI’s book value by 2–3%, already priced in by the market. Analysts anticipate continued steady performance supported by:

• Upcoming interest rate cuts

• GST reforms

• Increased credit demand during the festive season

• Cash Reserve Ratio (CRR) cut benefits

While some slippages have been noted in unsecured retail loans, credit costs remain manageable. SBI’s capital position is expected to strengthen after the Rs 25,000 crore capital infusion in July 2025. S&P forecasts SBI’s risk-adjusted capital ratio to rise to 7–7.5% over the next two years, up from 5.9% in March 2024, aided by India’s improving economic outlook and sovereign upgrade.

Should You Buy SBI?

• CLSA calls SBI a “truly valuable” stock, citing consistent outperformance, stable valuations, strong loan growth, and improving asset quality. The brokerage projects SBI may cross $100 billion in market capitalization within a year.

• Nuvama Institutional Equities expects PSU banks, including SBI, to post healthy loan growth in the September quarter, though net interest margins may slightly decline. SBI’s loan growth is forecast at 3%, with return on assets remaining above 1%.

Investors are advised to weigh these insights alongside professional financial advice before making trading or investment decisions.

(Disclaimer: Opinions and recommendations are those of experts and do not reflect India Today Group views. Consult a qualified financial advisor before investing.)