SBI stock rises nearly 2%; PSU banks rally, Nifty Bank up as SBI Mutual Fund IPO filing lifts sentiment

State Bank of India (SBI)

• SBI shares up after asset management arm filed IPO draft
• PSU bank stocks rallied, Nifty PSU Bank index up 2.54 percent
• SBI Mutual Fund IPO seen as a major value unlocking event

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Shares of State Bank of India (SBI) rose in Friday’s trade, gaining alongside a broader rally in PSU bank stocks, after news that its asset management arm has filed draft papers for a high-profile IPO. SBI stock was trading at Rs 1,067, up 1.75 percent in intra-day trade, while the benchmark indices remained firm.

The Sensex was up over 650 points, or 0.9 percent, at 74,863, while the Nifty gained more than 200 points to trade above 23,200 around 12:50 pm.

The move in SBI shares comes after its joint venture asset manager, SBI Funds Management, filed draft papers with market regulator Sebi for an IPO. The offering will be entirely an offer for sale by promoters State Bank of India and Amundi India, with no fresh issue component. The proposed listing is being seen as a key value unlocking trigger for SBI, given the scale and profitability of its mutual fund business. SBI Mutual Fund is the country’s largest asset manager, with assets under management exceeding Rs 12.6 lakh crore as of December 2025.

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The positive sentiment spilled over to the broader PSU banking pack, which emerged as one of the top-performing sectors in today’s session. The Nifty PSU Bank index rose 2.54 percent, significantly outperforming the Nifty Bank index, which was up 0.66 percent.

Among individual stocks, Bank of Maharashtra led the gains, rising 5.4 percent, followed by Indian Overseas Bank up 4.17 percent and Bank of India gaining 3.7 percent. Canara Bank, Union Bank of India and Bank of Baroda also advanced between 2.9 percent and 3.6 percent. Other PSU lenders such as Indian Bank, Punjab National Bank and Punjab & Sind Bank traded higher as well, reflecting broad-based buying interest across the segment.

The rally in PSU banks also supported the broader banking space, with the Nifty Bank index trading higher, although gains were relatively muted compared to PSU peers. The Nifty Private Bank index was up just 0.20 percent, indicating that the momentum remained concentrated in state-owned lenders. Overall market breadth remained positive, with 2,595 shares advancing against 1,237 declines.

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