SBI becomes sixth Indian firm to cross Rs 10 lakh crore mcap

markets

• SBI's market cap surpasses Rs10 lakh crore, now India's 6th most valuable firm.
• SBI overtakes ICICI Bank as second-most valuable bank after strong Q3 earnings
• SBI shares hit record high, driven by robust profit and improved asset quality

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With its market capitalisation crossing Rs 10 lakh crore, State Bank of India has entered the ranks of India’s most valuable listed companies. The milestone places the state-owned lender alongside Reliance Industries, HDFC Bank, Bharti Airtel, Tata Consultancy Services, and ICICI Bank, making it the sixth Indian firm to achieve the feat.

The state-owned lender also regained its position as the second-most valuable bank by mcap, overtaking ICICI Bank after a gap of more than six years. Earlier, on August 6, 2019, SBI’s market capitalisation stood at Rs 2.69 trillion, slightly above ICICI Bank’s Rs 2.65 trillion.

SBI’s mcap stood at about Rs 10.4 lakh crore, ahead of ICICI Bank’s Rs10.03 lakh crore, according to exchange data. HDFC Bank remains the most valuable bank, with a mcap of Rs 14.47 lakh crore.

SBI shares hit a record high of Rs 1,137 on the BSE, rising 6 percent in a single session following strong December quarter earnings. The stock has gained about 15 percent so far in 2026, after rising more than 25 percent in 2025.

The lender reported a strong performance in the third quarter of FY26, with profit after tax rising 24 percent year-on-year and 4 percent quarter-on-quarter, coming in about 25 percent above analyst estimates. Earnings were supported by one-off items, including dividend income of Rs22 billion, an income-tax refund of Rs7.7 billion, and lower employee benefit provisions of Rs14.3 billion quarter-on-quarter. Even after adjusting for these one-offs, profit remained about 5 percent above estimates.

Net interest income rose 9 percent year-on-year and 5 percent quarter-on-quarter, broadly in line with expectations, aided by strong loan growth of 16 percent year-on-year and 6 percent quarter-on-quarter, along with a 5 basis point sequential expansion in net interest margins. Pre-provision operating profit surged 40 percent year-on-year and 20 percent quarter-on-quarter, supported by strong treasury and foreign exchange income and controlled employee costs.

Asset quality continued to improve, with both gross and net slippages declining by 3 basis points sequentially, while credit costs fell by 10 basis points quarter-on-quarter to 0.40 percent. Management raised its FY26 credit growth guidance to 13 to 15 percent and maintained its exit net interest margin guidance of around 3 percent.

JM Financial said stable margins, efficient cost management, and benign credit costs are expected to support consistent profitability, with average return on assets and return on equity of about 1.0 percent and 15 percent, respectively, over FY27–FY28. The brokerage maintained a buy rating on the stock with a revised target price of Rs 1,250, valuing the core bank at 1.4 times FY28 estimated standalone book value per share.

JM Financial added that strong and diversified growth, resilient margins despite deposit pressures, industry-leading asset quality and sizeable provision buffers underpin SBI’s improved earnings visibility and balance-sheet strength.

Motilal Oswal said SBI delivered a strong all-round performance, led by robust business growth, margin expansion and healthy asset quality. The brokerage noted that net interest margin expanded 2 basis points quarter-on-quarter to 2.99 percent, with domestic margins at 3.12 percent. It said SBI expects net interest margins to remain at 3 percent or higher in FY26 and over the long term.

Motilal Oswal added that credit growth remained healthy at 15.6 percent year-on-year, supported by a strong pipeline, while asset quality continued to improve with benign credit costs of 29 basis points. The brokerage raised its earnings estimates by 3 percent and 4.3 percent for FY27 and FY28, respectively, and reiterated a buy rating with a revised target price of Rs 1,300.

Currently, SBI has 42 buy ratings and seven hold ratings, with no sell recommendations. ICICI Bank has 48 buy ratings and two hold ratings, with no sell ratings, according to analyst data.