SBI Enters $100-Billion Market-Cap Club
The development came at a time SBI's total business surpassed Rs 100 trillion.
.%20(Photo_%20Vijay%20Sartape_%20Source_%20BQ%20Prime).jpg?auto=format%2Ccompress&fmt=avif&mode=crop&ar=16%3A9&q=60)
State Bank of India reached up to a $100 billion in market capitalisation on Thursday after its second quarter results surpassed expectations, according to reports.
Reliance Industries Ltd. topped the market-cap rankings with a valuation of $228 billion. HDFC Bank has a valuation at $170 billion. Bharti Airtel Ltd., Tata Consultancy Services, and ICICI Bank were the other firms in the $100-billion market cap-club, CNBC TV18 reported.
The development came at a time SBI's total business surpassed Rs 100 trillion. This was made up of advances of Rs 44.2 lakh crore and deposits of Rs 55.9 lakh crore till September. This was credited to strong credit growth on the back of robust retail spending in the festive season.
SBI Chairman CS Setty had said the consolidation of public sector banks was a positive factor for the industry.
The number of PSBs has declined from 26 to 12, which has opened the door for significant scale advantages, Setty said.
Setty told CNBC TV18 that scale was "crucial" with regards to technology adoption. He said that without enough scale, investments in tech would be hard to account for and getting returns on them would become difficult.
He also told them that there could be more consolidation in the sector, but did not specify a timeline.
Shares of SBI closed 0.23% higher at Rs 960.75 apiece on the NSE, compared to a 0.34% fall in the benchmark Nifty. The stock has risen 12.39% in the last 12 months and 20.86% on a year-to-date basis.
Out of the 50 analysts tracking the company, 41 have a 'buy' rating on the stock, eight recommend 'hold' and one suggests 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 10.8%.
