- State Bank of India became the fourth most valued listed company in India
- SBI stock reached an all-time high of Rs 1,187 on the NSE with a 3.8% surge
- Market cap of SBI rose by Rs 38,000 crore to Rs 10.94 lakh crore
State Bank of India on Wednesday overtook Tata Consultancy Services Ltd. to become the fourth most valued listed company in India. The stock hit a fresh all-time high of Rs 1,187 on the NSE, after a 3.8% intraday surge. The market cap swelled by over Rs 38,000 crore to Rs 10.94 lakh crore.
The total traded volume was nearly twice the 30-day average, with a turnover of Rs 2,500 crore. The relative strength index (RSI) stood at 76, indicating the stock is in overbought territory. The shares have gained 11% so far this week and is close to beat the average of analysts' 12-month target price of Rs 1,210.
The TCS stock was down over 2%, amid a broader slump in IT stocks, with a total market capitalisation of Rs 10.54 lakh crore.
State-owned SBI remains the second most valued lender in India after private sector rival HDFC Bank Ltd. The PSU bank is followed by ICICI Bank Ltd., Kotak Mahindra Bank Ltd. and Axis Bank Ltd.
Why Is SBI Doing Well?
Shares of State Bank of India has seen positive momentum on the back of a strong set of December quarter results. The earnings also drew broadly positive commentary from brokerages, with strong loan growth, steady asset quality and improving margins underpinning the beat.
SBI's net interest income (NII) grew 9% year-on-year to Rs 45,190 crore, supported by an expanding loan book. Net interest margin (NIM) rose 2 basis points sequentially to 2.99% and is expected to move above 3% in the next quarter.
Chairman CS Setty said credit growth will remain robust, and the bank has accordingly revised its guidance to 14-15% for FY26, up from 12-13%. He noted strong credit demand across all major banking segments, adding that SBI continues to see healthy traction in retail loans, MSME financing, and corporate credit pipelines, supported by broad-based economic activity.
Of the 49 analysts tracking this stock, 42 have a buy rating, and seven have a hold call on it, as per Bloomberg data. The upside potential is 2%, with an average 12-month target price of Rs 1,210.
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