SBI Shares: Yes Bank Stake Sale Unlocks Value, Technicals Signal Over 10% Upside, Says SEBI Analyst

State Bank of India’s shares pared gains on Thursday, a day after the lender completed the divestment of its 13.18% stake in Yes Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for ₹8,889 crore. 

Earlier this year, SMBC made the offer to buy a 20% stake in Yes Bank, making it the single largest shareholder in the bank. Of this, 13% was to be purchased from SBI, and the remaining 7% from a consortium of Indian banks, including Axis Bank, HDFC Bank, ICICI Bank, among others. 

SEBI-registered analyst Pradeep Carpenter said the transaction unlocked value while reducing exposure, creating a clear fundamental catalyst for the stock. He added that this comes alongside SBI’s strong first-quarter (Q1) performance.

Technical Breakouts

Carpenter highlighted that SBI has delivered a structurally important set of technical breakouts. The stock has broken out of several key patterns on the chart, including a descending trendline, an inverted head-and-shoulders around ₹835, and a falling wedge. 

It’s also trading firmly above its 200-day average, with momentum gauges like the moving average convergence divergence (MACD) turning positive. Put together, the signals suggest the stock has room to run in the near to medium term.

Targets And Supports

According to Carpenter, the breakout above ₹835 now serves as near-term support, with the ₹800–₹820 zone also providing a cushion. 

On the upside, he sees a first target of ₹900, followed by ₹912 at lifetime highs. If that level is convincingly breached with volume, Carpenter expects the rally could extend toward ₹950–₹970. 

He noted, however, that the relative strength index (RSI) is in overbought territory, which may trigger short-term pullbacks.

Valuation And Risks

Carpenter said SBI remains a dominant franchise with large deposit market share and scale advantages, and that valuations appear attractive compared with private peers. 

Still, he flagged risks such as macro or sector shocks, a reversal in banking earnings momentum, or profit-taking around lifetime highs. 

He also cautioned that while the stake sale proceeds provide a boost, investors should monitor recurring earnings drivers like net interest income and margins.

Takeaway

Carpenter concluded that SBI’s completion of the Yes Bank stake sale, combined with solid Q1 earnings and the alignment of multiple bullish technical patterns, supports a medium-term path toward ₹900 and potentially higher if the stock clears ₹912.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘bullish’ amid ‘high’ message volume.

SBI’s stock has risen 7.9% so far in 2025.

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