SBI shares continue their upward momentum, post Yes bank stake sale
By Ankur Chandra | Updated at: Sep 19, 2025 01:30 PM IST
State Bank of India’s (SBI) shares are on the rise today. At 11:10 a.m. IST, 19th September, 2025, the stock price is up by 0.91%, trading at Rs 862.10. Nifty 50 index is down by 0.42% at this time.
SBI’s shares are on the rise since Yes Bank stake sale to SMBC
In the past 5 days, SBI’s shares have gained more than 4%. Much of these gains have come after 17th September, when SBI sold its 13.18% stake in Yes Bank to Japan’s SMBC for around Rs 8,800 crore.
Lower interest rate scenario
US Federal Reserve also announced an interest rate cut of 25 basis points earlier this week. Markets are expecting that RBI too will now follow suit. It is likely to announce an interest rate cut in its next monetary policy meeting. Lower interest rates increase demand for loans such as home loans. Non-performing assets (NPAs) of banks such as SBI may also go down because of lower interest rates. NPAs are those loans given by banks on which repayments have become overdue for more than 90 days.
It needs to be noted that the high interest scenario in the post –Covid years increased the profitability of banks. Their net interest margins went up. Net interest margin is the difference between the interest rate that a bank charges on the loans that it has given and the interest rate that it pays to its depositors.
It is likely that banks will reduce the interest rate that they pay on their deposits to offset any impact on their net interest margin because of the lower interest rate scenario.
SBI’s stock has outperformed the Nifty 50 index by aroun 2% in 2025
Year to date (YTD) in 2025, SBI’s share price has increased by 8.48%. In the same period, Nifty 50 index has gained around 6.6%. SBI’s stock has outperformed the benchmark Nifty index by around 2% this year.
Stock currently trading at relatively low P/E ratio
SBI’s stock is currently trading at a Price-to-Earnings (P/E) ratio of around 10. This also makes the stock relatively cheaper when compared to the prevailing valuation of many other companies.
Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.
Source : NSE
