Should You Invest in State Bank of India Stock in 2025?
Is it the right time to buy State Bank of India?
ScoreState Bank of India (SBI), trading at approximately ₹807.10 as of July 2025 with an impressive average daily volume of 13.15 million shares, is a cornerstone of the Indian banking sector. As the largest public sector bank in India, SBI commands over 22.5% market share in deposits and continues to grow its loan book robustly. Despite modest short-term technical weakness (with recent technical indicators signaling short-term caution), the bank has delivered strong fundamental results: a net profit of ₹20,379 crores in Q4 FY25 and annual net profit growth of 15.8% over the last year. Recent developments include a substantial fundraising plan of $3 billion via international markets and a new infrastructure bonds issuance, reinforcing SBI’s long-term growth strategies. While its dividend yield of 1.97% adds steady income for investors, the broader market remains constructive, reflecting confidence in SBI’s digital transformation and stable asset quality. The consensus among more than 12 national and international banks puts SBI’s target price at ₹1,049, underlining the bank’s solid positioning within the evolving Indian financial sector. In this context, SBI offers an attractive long-term outlook for investors mindful of banking sector trends in India.
- ✅Consistent net profit growth, 36.3% CAGR over five years
- ✅Strong digital banking and infrastructure investments
- ✅Largest public sector bank with national reach
- ✅Healthy asset quality, Gross NPA down to 2.13%
- ✅Attractive valuation with P/E ratio of 9.29
- ❌Short-term technical signals point to mild downside risk
- ❌Interest coverage ratio remains relatively low compared to peers
Score- ✅Consistent net profit growth, 36.3% CAGR over five years
- ✅Strong digital banking and infrastructure investments
- ✅Largest public sector bank with national reach
- ✅Healthy asset quality, Gross NPA down to 2.13%
- ✅Attractive valuation with P/E ratio of 9.29
Is it the right time to buy State Bank of India?
- ✅Consistent net profit growth, 36.3% CAGR over five years
- ✅Strong digital banking and infrastructure investments
- ✅Largest public sector bank with national reach
- ✅Healthy asset quality, Gross NPA down to 2.13%
- ✅Attractive valuation with P/E ratio of 9.29
- ❌Short-term technical signals point to mild downside risk
- ❌Interest coverage ratio remains relatively low compared to peers
Score- ✅Consistent net profit growth, 36.3% CAGR over five years
- ✅Strong digital banking and infrastructure investments
- ✅Largest public sector bank with national reach
- ✅Healthy asset quality, Gross NPA down to 2.13%
- ✅Attractive valuation with P/E ratio of 9.29
- What is State Bank of India?
- How much is State Bank of India stock?
- Our full analysis of the State Bank of India stock
- How to buy State Bank of India stock in India?
- 7 Tips for Buying State Bank of India Stock
- The latest news about State Bank of India
- FAQ
- On the same topic
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of State Bank of India for over three years. Every month, lakhs of users in India trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by State Bank of India.
What is State Bank of India?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | India’s largest public sector bank; flagship financial institution. |
| 💼 Market | NSE/BSE | Listed on both major Indian exchanges, ensuring high liquidity. |
| 🏛️ ISIN code | INE062A01020 | Unique global identifier for State Bank of India shares. |
| 👤 CEO | Ashwini Kumar Tewari | Experienced leader focused on digital transformation and growth. |
| 🏢 Market cap | ₹7,20,306 Crores | SBI remains one of India’s most valuable and systemically important banks. |
| 📈 Revenue | ₹4,90,938 Crores (FY25E) | Shows continued growth and strong banking operations. |
| 💹 EBITDA | Not separately reported | Indian banks highlight net interest/operating profit instead of EBITDA. |
| 📊 P/E Ratio (Price/Earnings) | 9.29 | Attractive valuation compared to sector, suggesting upside potential. |
How much is State Bank of India stock?
The price of State Bank of India stock is rising this week. As of July 3, 2025, the current share price is ₹807.10, reflecting a 24-hour change of -0.71% and a weekly gain of +1.26%. The market capitalization is ₹7,20,306 crores, with an average trading volume of about 13.15 million shares over the last three months. The stock trades at a P/E ratio of 9.29, offers a dividend yield of 1.97%, and has a low beta of 0.52, indicating relatively stable movement compared to the market. This creates an appealing opportunity for investors seeking a blend of earnings growth and steady income.
Our full analysis of the State Bank of India stock
After reviewing State Bank of India’s latest financial results and analysing the stock’s performance over the past three years, we have synthesized insights from multiple sources: financial indicators, technical signals, sector data, and competitor benchmarking—validated by our proprietary quantitative and qualitative algorithms. So, why might State Bank of India stock once again become a strategic entry point into the Indian banking sector in 2025?
Recent performance and market context
The share price of State Bank of India (SBI) stands at ₹807.10 (as of July 3, 2025), representing a robust recovery from recent lows and delivering a 1.26% rise over the past week. Even with a 3.91% dip over the last year, SBI’s longer-term performance remains outstanding, boasting a 337% gain over five years—a testament to its industry leadership and strategic resilience. Recent headlines highlight SBI’s ₹20,379 crores quarterly net profit, a 4.6% sequential increase, accompanied by a +12% year-over-year surge in total revenue to ₹4,90,938 crores for FY25. Notably, the approval to raise $3 billion in international markets and the issuance of ₹10,000 crores in infrastructure bonds reflect ambitious expansion and prudent capital management, clear positives for the growth narrative.
From a sector perspective, India’s macroeconomic landscape underpins a bullish setting for public sector lenders. Stable interest rates, continued fiscal stimulus, and expanding credit growth—especially in retail and infrastructure—create fertile ground for SBI’s core business model. The broader move towards digital banking further differentiates SBI, positioning it as the prime beneficiary of increased technology adoption and evolving consumer preferences.
Technical analysis
Examining technical indicators, State Bank of India currently displays an intriguing set-up for tactical positioning. The 14-day RSI stands at 40.16, close to oversold region, often considered a precursor to bullish reversals, especially at historically strong support zones such as ₹803.77 and ₹800.43. While the MACD is slightly negative at -0.22, this aligns with a classic mean-reversion scenario; sharp downside corrections have historically paved the way for new uptrend phases in this stock.
Looking at moving averages, SBI trades just above its 100-day (₹800.70) and 200-day (₹803.72) simple moving averages, a structure that has often preceded medium-term rallies. Immediate resistance levels lie at ₹812.47 and ₹817.83—modest milestones that, if broken on increased volume, could confirm the emergence of a new bullish wave. Technical momentum, although neutral to mildly negative in the short term, remains constructive over the medium horizon, suggesting an environment ripe for position-builders awaiting confirmation signals.
Fundamental analysis
SBI’s fundamentals reinforce its status as India’s flagship financial institution. The bank’s 12% year-on-year revenue growth and 15.8% jump in annual net profit to ₹80,523 crores reflect a model of operational excellence and prudent asset quality. The earnings per share for FY25 stands at ₹86.91, while return on equity (ROE) is a healthy 17.2%, well above most domestic competitors.
A key point of attractiveness is SBI’s valuation: with a trailing P/E ratio of just 9.29 and a price-to-book of 1.49, the stock appears undervalued relative to its growth, market share, and blue-chip status. The 18.2% dividend payout ratio, translating to a 1.97% yield, creates a compelling total return proposition. Structurally, SBI enjoys a dominant 22.6% market share in deposits and 19.1% in net advances, supported by a best-in-class distribution network and a trusted brand legacy.
The ongoing investments in digital transformation and innovation underpin SBI’s ability to monetize new growth channels. Projected credit growth—catalyzed by India’s surging consumption and infrastructure cycle—should continue to generate outsized profitability well above sector averages for several years.
Volume and liquidity
SBI’s average daily trading volume exceeds 13 million shares on the NSE alone, ensuring exceptional liquidity. Such depth is rare among large Indian equities and signals pronounced institutional conviction, with steady inflows from both domestic and foreign investors. The substantial free float—coupled with government backing and broad public participation—allows for dynamic price discovery without undue volatility.
This liquidity profile gives investors flexibility: positions of any size can be accumulated or unwound efficiently, and major news or macroeconomic shifts are promptly reflected in market prices. For both short-term traders and long-term allocators, this characteristic amplifies the appeal of SBI as a core holding.
Catalysts and positive outlook
A suite of compelling catalysts lies on the horizon for State Bank of India. The imminent $3 billion international fundraising initiative will augment capital ratios and facilitate expansion in high-margin lending segments. Infrastructure bond issuance and the government’s ongoing infrastructure drive are set to turbocharge asset growth and underpin net interest income.
SBI also continues to advance its digital banking platform, leveraging India’s fintech ecosystem and broadening access to new demographic segments, from rural customers to SME entrepreneurs. ESG (Environmental, Social, and Governance) initiatives have also gained momentum, with SBI supporting green project financing and sustainable lending practices—a factor increasingly prioritized by global institutional investors.
The broader sector narrative further lifts SBI’s outlook: reforms from the Reserve Bank of India are modernizing compliance and credit monitoring, which should further reduce non-performing asset risks. Demand for financial services, including home finance and retail lending, is accelerating, with SBI’s diverse product suite uniquely positioned to capture market share.
Investment strategies
- Short-term traders may look for entries near technical support levels (₹800–₹805), taking advantage of recent pullbacks and targeting the first resistance zone around ₹812–₹817 for partial profit taking.
- Medium-term investors can accumulate through systematic investment, focusing on breakout opportunities driven by bond issuance or positive earnings surprises. The 100- and 200-day moving averages act as robust accumulation signals in an upcycle.
- Long-term allocators should consider the combination of value (low P/E, attractive yield), structural dominance, and superior growth execution. Buying during technical consolidations or ahead of confirmed earnings catalysts could position portfolios to benefit from both stock appreciation and dividend income.
In all cases, State Bank of India offers a favorable risk/reward profile thanks to its balance sheet strength, government ownership (57.43%), and diversified revenue streams. Recent contingent liabilities and regulatory oversight—while worthy of monitoring—do not materially detract from the underlying investment case.
Is it the right time to buy State Bank of India?
State Bank of India combines proven resilience, rapid profit growth, and an undervalued share price to present what seems to represent an excellent opportunity in Indian financials. The coming quarters are set to be shaped by transformative capital raising, reinforced digital leadership, and robust participation in India’s economic boom. As a stock with high liquidity, world-class governance, and substantial institutional support, every technical consolidation phase offers an ideal vantage point for medium- to long-term accumulation. Investors seeking exposure to the core of India’s dynamic growth story will likely find that the fundamentals justify renewed interest—potentially marking the beginning of a promising new bullish phase for SBI in 2025 and beyond.
How to buy State Bank of India stock in India?
Buying State Bank of India stock online is both simple and secure when you use a regulated broker based in India. Investors can choose between two main methods: traditional spot buying (direct share ownership) or Contracts for Difference (CFDs, which allow trading with leverage and often without owning shares physically). Each method suits a different investment style or objective. We suggest reviewing the broker comparison chart further down the page to select the right platform for your needs.
Spot buying
A cash, or spot, purchase means you buy State Bank of India shares and become their direct owner, benefiting from potential dividends and price appreciation. Traditional brokers typically charge a fixed commission per order, usually between ₹20 and ₹50, or a flat USD equivalent (often around $5), plus small regulatory charges for each transaction.
Example of a Gain Scenario
If the State Bank of India share price is $9.70 (about ₹807) in INR, you can buy around 103 shares with a $1,000 stake, including a typical brokerage fee of about $5.
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading (Contract for Difference) on State Bank of India shares lets you speculate on price movements without actually owning the shares. Fees include a “spread” (the difference between buy and sell price), and if you keep your position overnight, potential financing costs. The key draw is leverage, allowing you to control a larger position with less upfront capital.
Example of a CFD Gain Scenario
You open a CFD position on State Bank of India shares with a $1,000 deposit and 5x leverage.
This gives you market exposure equivalent to $5,000.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Before investing, carefully compare brokers to assess their fees, regulations, available markets, and customer support. Your choice between cash buying and CFD trading should match your financial goals, risk appetite, and investment horizon. A detailed broker comparison can be found further down this page to help you make an informed, confident decision on how to invest in State Bank of India.
Check out the best brokers in India!Compare brokers7 Tips for Buying State Bank of India Stock
| 📊 Step | 📝 Specific tip for State Bank of India |
|---|---|
| Analyze the market | Review State Bank of India’s long-term role in public sector banking and India’s economic growth trends before investing. |
| Choose the right trading platform | Use an established broker offering NSE/BSE access, real-time data, and fair brokerage fees for State Bank of India shares. |
| Define your investment budget | Set an investment limit mindful of the banking sector’s cycles and SBI’s recent stock volatility. |
| Choose a strategy (short or long term) | Consider a long-term approach to benefit from State Bank of India’s digital transformation and dividend policy. |
| Monitor news and financial results | Stay updated on quarterly results, government policies, and sector news that may move State Bank of India shares. |
| Use risk management tools | Employ stop-loss orders or set alerts to manage risk in case of sharp price swings. |
| Sell at the right time | Take profits during market rallies or before expected regulatory or earnings announcements affecting State Bank of India. |
The latest news about State Bank of India
SBI announces a ₹15.90 per share final dividend, sustaining a nearly 2% yield for investors. This dividend declaration, with an ex-dividend date in May and payout in July, is part of State Bank of India's consistent 18.2% payout policy, reinforcing investor trust and supporting steady income generation in a volatile market.
SBI’s annual net profit for FY25 rose 15.8% year-on-year, reaching ₹80,523 crores, underscoring strong operational momentum. This robust earnings growth is supported by total annual revenue of ₹4,90,938 crores, improved net interest income, and solid loan book expansion, reflecting healthy banking sector fundamentals in India.
Analyst sentiment remains bullish, with consensus price targets implying up to 18% upside from current levels. Prominent brokerages, including Jefferies, have reiterated ‘Buy’ recommendations, citing India’s macroeconomic strength, SBI’s leadership, and digital transformation initiatives as key catalysts for further stock appreciation.
Stable asset quality metrics further enhance SBI’s outlook, with gross NPAs at 2.13% and net NPAs just 0.52%. These improved figures signal effective risk management and credit monitoring, providing reassurance in the face of broader economic uncertainties and underpinning SBI’s resilience within India’s financial landscape.
SBI is implementing substantial fundraising and infrastructure investment plans to support aggressive growth and modernization. Recent board approvals for ₹10,000 crores in infrastructure bonds and a $3 billion global fundraising initiative in FY26 signal the bank’s confidence in leveraging India’s accelerating demand for credit and new digital banking services.
FAQ
What is the latest dividend for State Bank of India stock?
State Bank of India currently pays a dividend. The latest declared final dividend is ₹15.90 per share, with the ex-dividend date on May 16, 2025. This payout reflects a yield of nearly 2% at recent share prices and continues SBI’s consistent dividend policy with an 18.2% payout ratio, supporting steady income for long-term shareholders.
What is the forecast for State Bank of India stock in 2025, 2026, and 2027?
Based on the most recent price of ₹807.10, the end-of-year projections are ₹1,049 for 2025, ₹1,211 for 2026, and ₹1,614 for 2027. These outlooks reflect ongoing growth opportunities for India’s banking sector, strong government support for public sector banks, and several leading analysts issuing “Buy” ratings for SBI.
Should I sell my State Bank of India shares?
Holding your State Bank of India shares may be a sound approach given the company’s attractive valuation, solid financials, and proven resilience in India’s evolving banking sector. SBI has delivered consistent long-term growth, maintains robust capital strength, and continues to invest in digital transformation. Many analysts remain optimistic about its mid- and long-term performance, and current fundamentals suggest patience could be rewarded.
How are dividends and capital gains on State Bank of India stock taxed in India?
Dividends from State Bank of India are taxable in the investor’s hands at their applicable income tax slab, with a 10% TDS applied if annual dividends exceed ₹5,000. Long-term capital gains (for shares held over one year) are taxed at 10% above ₹1 lakh of total gains per year, while short-term gains are taxed at 15%. There is no special tax-sheltered account for domestic stocks in India.
What is the latest dividend for State Bank of India stock?
State Bank of India currently pays a dividend. The latest declared final dividend is ₹15.90 per share, with the ex-dividend date on May 16, 2025. This payout reflects a yield of nearly 2% at recent share prices and continues SBI’s consistent dividend policy with an 18.2% payout ratio, supporting steady income for long-term shareholders.
What is the forecast for State Bank of India stock in 2025, 2026, and 2027?
Based on the most recent price of ₹807.10, the end-of-year projections are ₹1,049 for 2025, ₹1,211 for 2026, and ₹1,614 for 2027. These outlooks reflect ongoing growth opportunities for India’s banking sector, strong government support for public sector banks, and several leading analysts issuing “Buy” ratings for SBI.
Should I sell my State Bank of India shares?
Holding your State Bank of India shares may be a sound approach given the company’s attractive valuation, solid financials, and proven resilience in India’s evolving banking sector. SBI has delivered consistent long-term growth, maintains robust capital strength, and continues to invest in digital transformation. Many analysts remain optimistic about its mid- and long-term performance, and current fundamentals suggest patience could be rewarded.
How are dividends and capital gains on State Bank of India stock taxed in India?
Dividends from State Bank of India are taxable in the investor’s hands at their applicable income tax slab, with a 10% TDS applied if annual dividends exceed ₹5,000. Long-term capital gains (for shares held over one year) are taxed at 10% above ₹1 lakh of total gains per year, while short-term gains are taxed at 15%. There is no special tax-sheltered account for domestic stocks in India.
On the same topic
