Mumbai, Feb 09 : State Bank of India (SBI) has crossed the ₹10 lakh crore market capitalisation mark, joining an elite group of India’s most valuable listed firms that includes Reliance Industries, HDFC Bank, Bharti Airtel, Tata Consultancy Services, and ICICI Bank. With this milestone, the public sector lender has also reclaimed its position as the country’s second-most valuable bank, moving ahead of ICICI Bank after more than six years.
Exchange data shows SBI’s market value at roughly ₹10.4 lakh crore, compared with ICICI Bank’s ₹10.03 lakh crore. HDFC Bank continues to lead the sector with a valuation of about ₹14.47 lakh crore.
Record stock surge backed by earnings
The bank’s shares touched an all-time high of ₹1,137 on the BSE, climbing 6 percent in a single trading session following robust December-quarter results. The stock has advanced nearly 15 percent so far in 2026, building on gains of over 25 percent recorded last year.
For the third quarter of FY26, SBI reported a 24 percent year-on-year increase in profit after tax and a 4 percent sequential rise, exceeding analyst expectations by a wide margin. Earnings were partly supported by one-off items such as dividend income, an income-tax refund, and lower employee benefit provisions. Even after adjusting for these factors, profit remained above estimates.
Core operations show steady momentum
Net interest income grew 9 percent from a year earlier, supported by loan expansion of about 16 percent and a modest improvement in net interest margins. Pre-provision operating profit jumped 40 percent year on year, driven by strong treasury and foreign exchange income alongside disciplined cost control.
Asset quality continued its improving trend, with lower slippages and credit costs declining to around 0.40 percent. Management has raised its FY26 credit growth guidance to 13–15 percent and expects margins to remain near the 3 percent level.
Brokerages remain bullish on outlook
Analysts maintain a positive stance on the lender, citing stable margins, controlled costs, and resilient asset quality as key drivers of long-term profitability. Estimates suggest returns on assets could average around 1 percent, while return on equity may hover near 15 percent over the next few years.
Brokerages have reiterated “buy” recommendations with target prices ranging between ₹1,250 and ₹1,300, pointing to diversified growth, strong balance-sheet buffers, and improved earnings visibility.
Currently, SBI commands widespread analyst support with dozens of buy ratings and no sell calls underscoring growing investor confidence as the bank strengthens its position within India’s financial landscape.