SBI hits 52-week high

Pips HDFC Bank to regain most valued bank status

State Bank of India (SBI) is trading higher by 1.1% at Rs 2,475, also its 52-week high, extending its about 3% rise in past four trading sessions on the National Stock Exchange.

The stock opened at Rs 2,460 and hit a low of Rs 2,436 on the NSE. A combined around 1.09 million shares have changed hands on the counter so far on both the exchanges.

India’s largest lender SBI, regained its position of country’s most valued bank amid a stellar stock market rally driven by strong overseas inflow after the government initiating the process of long awaited reforms.

SBI with the total market valuation of Rs 166,082 crore has surpassed second largest private sector lender HDFC Bank, having market capitalization of Rs 162,448 crore.

Analyst believe reforms like land acquisition bill, faster clearances of infrastructure projects worth more than Rs 1,000 crore, environment clearances, coal FSA’s etc. may improve the visibility on both the credit growth and asset quality front of public sector undertaking (PSU) banks.

“With higher probability of the government initiating various reforms and interest rates likely to fall from here on, SBI is likely to be better off in the forthcoming years,” analyst at ICICI Securities said in recent report.