SBI shares rallied to a 2025 high after announcing a ₹45,000 crore capital raise. Retail activity on Stocktwits is bullish, and key indicators show upside momentum ahead.
State Bank of India (SBI) shares rallied to their highest point in 2025, as India’s largest lender looks to strengthen its coffers.
The bank’s board approved raising ₹45,000 crores during FY26, of which ₹25,000 crore would be via a Qualified Institutional Placement (QIP) at a floor price of ₹811.05 and ₹20,000 crore through the sale of Basel III–compliant AT1 and Tier-II bonds.
SBI shares rose 2% intraday on Thursday.
This infusion of funds is aimed at enhancing SBI’s CET-1 ratio by approximately 60 basis points, supporting its ongoing loan growth target of 12–13% CAGR, and ensuring regulatory readiness for expansion in both corporate and retail lending.
SEBI-registered analyst Pradeep Carpenter noted that the initial phases of the QIP have attracted strong institutional interest, and the stock has remained resilient, trading in the ₹830–₹850 range, signaling investor confidence in the bank’s capital management strategy.
SBI has seen a decisive breakout from a multi-quarter descending triangle pattern on its weekly chart, specifically around the ₹835 mark. This comes after a year of consolidation, indicating a potential resumption of its upmove.
Additional technical indicators also paint a positive picture. The Moving Average Convergence Divergence (MACD) has entered bullish territory. Its Relative Strength Index (RSI) is trending above 60, signaling renewed buying strength but not overbought. And the stock’s 50-week Moving Average remains upward sloping, acting as a dynamic support at lower levels.
Carpenter identified an immediate short-term target at ₹880 – ₹900 (1–3 months), and a medium-term target of ₹950 – ₹1,000 (6–12 months). He sees support between ₹810–₹820 (trend validity zone)
He added that while QIP-induced dilution could lead to a potential short-term consolidation, its structural trend remained bullish, aligned with breakout & other positive indicators. The bank’s proactive capital strategy, along with the ongoing PSU banking reforms and the credit cycle uptrend in India, supports the outlook.
However, risks to monitor include the potential for equity dilution if QIP demand softens, rising bond issuance costs in a volatile interest rate environment, and broader macroeconomic factors affecting credit demand.
Data on Stocktwits shows retail sentiment is ‘bullish’ amid ‘heavy’ message volumes.
SBI shares have risen 5% year-to-date (YTD).
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