SBI Share Price Target: Rs 50,000 Crore Fundraise Via Bonds In FY 2025 - Buy, Sell or Hold?

The State Bank of India ( SBI ), on Wednesday said that it has raised Rs 50,000 crore via domestic bonds in FY 2025. In an exchange filing, SBI, the country's largest lender said that the bank's issues attracted an overwhelming response from investors.

SBI Fundraise: Latest Update Today

"The country’s largest lender has raised ₹5,000 crore AT1 Bonds, ₹15,000 crore Tier 2 Bonds and ₹30,000 crore Long Term Bonds till date during FY25 at a very competitive rate. All these issues have attracted an overwhelming response from investors and were oversubscribed by more than 2 times against the respective base issue size," SBI said.

According to the exchange filing, the investors in SBI bonds include - provident funds, pension funds, insurance companies, mutual funds, and banks, among others.

"Wider participation and heterogeneity of bids demonstrated the trust investors place in the country’s largest Bank. Bank’s AT1 Bonds are rated AA+ (stable outlook) and both the Tier 2 and Long Term Bonds are rated AAA (stable outlook). These bonds are of 15-year tenor except for the AT1 Bonds which is perpetual. The AT1 and Tier 2 Bonds raised by the Bank during the year are issued with a call option after 10 years or any anniversary date thereafter," SBI Chairman CS Setty said.

SBI Share Price Target 2024

Kotak Institutional Equities has a 'Buy' rating on SBI stock. In its latest report dated November 25, Kotak Institutional Equities gave the fair value of SBI stock as Rs 975. On Wednesday, SBI shares closed at Rs 834.20 apiece. "We maintain BUY with a FV of Rs975 (unchanged), valuing the bank at 1.5X (adj.) book and 9X September FY2026 EPS for RoEs of ~15%. We come back
from our interactions with an underlying view that SBI is still in a very comfortable position to deliver on growth and profitability ratios. Our earnings are probably conservative compared with what management is aspiring to deliver (NIM, cost structure and risk). This implies that the scope for upgrades is probably the highest among the frontline banks, including private banks," Kotak Institutional Equities said in its November 25 note. 

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