FIIs and DIIs Place Big Bets on State Bank of India — Analysts See 20% Rally Ahead

In a major boost for India’s banking sector, Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) are ramping up investments in State Bank of India (SBI). Analysts predict a 20% upside in the stock, driven by strong financials, declining NPAs, and a favorable economic outlook.

Institutional Investors Bet Big on SBI

Recent BSE data shows a sharp rise in FII and DII holdings in SBI. After reducing exposure earlier in 2023 due to global concerns, FIIs are now increasing stakes, while DIIs—including mutual funds and insurers—are also betting on SBI’s long-term growth.

The bank’s Q4 FY24 results showcased a 24% YoY jump in net profit, with gross NPAs falling to a decade-low of 2.24%. This improved asset quality has reinforced investor confidence, making SBI a top pick in the banking space.

Why Analysts Are Bullish on SBI

Leading brokerages have revised SBI’s target price upward, citing key strengths:

✔ Robust Loan Growth – Strong demand in retail, corporate, and SME segments, supported by India’s 7%+ GDP growth forecast.
✔ Declining Bad Loans – Reduced NPAs due to better recovery efforts, lowering future provisioning needs.
✔ Healthy Margins – Sustained NIMs above 3.5%, backed by a high CASA ratio (~45%).
✔ Government Backing – As India’s largest PSB, SBI enjoys stability from state support.

Technical Analysis: SBI Poised for a Breakout?

SBI’s stock is trading near all-time highs, breaking out of a consolidation phase. Analysts suggest that holding above ₹850-860 could push it toward ₹1,000-1,050 in the medium term.

“SBI is showing relative strength against Nifty Bank,” says Ritesh Agarwal, a technical analyst. “Institutional buying signals further upside potential.”

Key Risks to Monitor

Despite the optimism, investors should watch:
⚠ Global Macro Risks – Rising US yields and geopolitical tensions may trigger FII outflows.
⚠ Regulatory Changes – RBI policy shifts could impact profitability.
⚠ Private Bank Competition – HDFC Bank and ICICI Bank remain strong rivals in retail.

Should You Invest in SBI?

With institutional backing and strong fundamentals, SBI appears well-positioned for growth. Long-term investors may consider accumulating on dips, given India’s economic momentum.

Key Takeaways:

✅ FIIs & DIIs increasing holdings in SBI
✅ Analysts see 20% upside (target: ₹1,000+)
✅ Strong loan growth, lower NPAs, stable margins
✅ Technical breakout suggests bullish momentum

Disclaimer: This is not investment advice. Consult a financial expert before investing.