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  5. SBI shares rise 1% as NSE IPO opens; Jefferies sees 15%+ ROE

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SBI shares rise 1% as NSE IPO opens; Jefferies sees 15%+ ROE

Swati Verma
By Swati Verma

3 min read | Updated on September 17, 2026, 10:15 IST

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SUMMARY

SBI is offering 1.597 crore NSE shares through the OFS, which could fetch the bank around ₹2,851 crore at the upper end of the ₹1,785 price band.

Stock list

SBIN
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SBI-shares-NSE-IPO-Sept-17

ROE (Return on Equity) shows how much profit the bank makes from shareholders’ money. An ROE of 15% means SBI generates about ₹15 of profit for every ₹100 of shareholders’ equity. Image: Shutterstock

Shares of State Bank of India (SBI), India's largest lender, gained 1% in the early trade on Thursday, September 17. Analysts at Jefferies underlined the bank's management’s view that the economy is holding up well despite ongoing concerns, while the bank remains focused on consistent growth and profitability.

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The stock gained as much as 0.95% to ₹1,000.90 on the NSE.

SBI is looking to improve operating efficiencies and scale up segments such as self-employed and professional loans, retail current deposits and wealth management, while also strengthening cross-sells and digitisation.

Jefferies believes these initiatives could support 13–15% loan growth, with ROE above 15% and ROA above 1%.

What you need to understand

Loan growth: This tells you how fast the bank’s lending business is growing. If SBI’s loans grow 13–15%, it means the total amount of money it has lent to customers and businesses is expected to increase by that rate. Higher loan growth generally means more business for the bank.
ROE (Return on Equity): This tells you how much profit the bank makes from shareholders’ money. An ROE of 15% means SBI generates about ₹15 of profit for every ₹100 of shareholders’ equity.
ROA (Return on Assets): This tells you how efficiently the bank uses all the money/assets on its balance sheet to generate profit. An ROA of 1% means the bank makes about ₹1 of profit for every ₹100 of assets.

In short, loan growth measures business expansion, ROE measures profit earned on shareholders’ capital, and ROA measures profit earned from the bank’s overall assets.

NSE IPO opens

SBI shares are also in focus as the NSE IPO opens for subscription on Thursday. SBI is offering 1.597 crore NSE shares through the OFS, which could fetch the bank around ₹2,851 crore at the upper end of the ₹1,785 price band.

SBI Capital Markets is separately selling 87.8 lakh shares, worth around ₹1,567 crore at the upper band.

Recent developments to know

Last week, SBI Chairman C S Setty dismissed concerns that FCNR(B) flows could lead to "abnormal lending", pointing out that the inflows would be deployed over a period of up to four months.

Setty, who heads India's largest lender, said bankers would be responsible for deploying the funds of over USD 127 billion garnered from the diaspora as part of the special concessional swap window from the RBI (Reserve Bank Of India).

"I don't think (it will lead to abnormal lending), everybody will be more responsible," Setty told reporters on the sidelines of the annual GFF (Global Fintech Fest) in Mumbai, replying to a question on whether the inflows will lead to abnormal lending.

Speaking at the same event, the third largest private sector lender Axis Bank's Managing Director and Chief Executive Amitabh Chaudhry had flagged concerns that the FCNR(B) money could lead to some "abnormal lending".

Setty said the money will get deployed in the next three to four months.

Setty added the RBI's six-member monetary policy committee is unlikely to go for a rate hike in the next policy review in October.

With PTI inputs
Disclaimer: This article is written purely for informational purposes and should not be considered investment advice from Upstox. Securities mentioned are illustrative and not recommendations. Please consult a financial adviser before making any investment decisions.

About The Author

Swati Verma
Swati Verma is a business journalist with 12 years of experience. She writes on equities, corporate earnings, sectoral trends, and industry outlook, among others. At Upstox, she leads financial markets coverage.

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