SBI rallies 3%, stock hits all-time high; what's driving PSB giant?

SBI stock has outperformed in January with a gain of 7 per cent thus far. The bank's chairman expects private investment to rebound once global trade and US tariff-related disruptions settle.

State Bank of India (SBI) share price today

 

Shares of State Bank of India (SBI) hit an all-time high of ₹1,055.35, as they rallied 3 per cent on the BSE in Thursday’s intra-day trade on expectations of strong earnings. The stock price of the public sector bank (PSB) giant surpassed its previous high of ₹1,051.90 touched on January 20, 2026.

 

Thus far in the month of January, SBI has outperformed the market by gaining 7 per cent, as compared to 3 per cent decline in the BSE Sensex. In the past six months, the stock has surged 29 per cent, as against 0.63 per cent rise in the benchmark index.

 

SBI to announce Q3 results on February 7, 2026

 

SBI on Wednesday, January 21, 2026 informed that a meeting of the Central Board of the Bank will be held on Saturday, February 7, 2026 at Mumbai, inter-alia, to consider the financial results of the Bank for the quarter ended December 31, 2025 (Q3FY26).

 

An Analyst Meet will be conducted on February 7, 2026 at 5.00 PM post Q3FY26 Results at State Bank Bhavan Auditorium, the Bank said.  ALSO READ | Q3 Results Today 

What’s driving SBI stock price on Thursday?

 

SBI Chairman Challa Sreenivasulu Setty highlighted that private investment is likely to see a broad-based rebound once global trade and the US tariff-related disruptions settle. SBI continues to grow 2–3 percentage points faster than nominal GDP, targeting 11–12 per cent balance-sheet growth and adding business of nearly ₹10 trillion annually, underscoring its ability to scale organically without participating in further public-sector bank consolidation.

 

The bank is prioritising technology adoption, especially artificial intelligence, to improve efficiency, productivity and market reach. Setty expects a pause in policy rate cuts in February, which should help protect exit margins by March 31, 2026, ICICI Securities said in a note.

 

While savings account balances are holding up, current account deposits remain under pressure due to government just-in-time cash management, prompting a sharper focus on business current accounts. He added that services quality and asset allocation, rather than tax incentives, will be key to sustaining deposit growth, and clearer private capex trends should emerge once tariff uncertainty eases, the brokerage firm said.

 

Brokerages view on SBI 

 

SBI management reaffirmed its net interest margin (NIM) guidance above 3 per cent for H2FY26, supported by deposit repricing and CRR cut. In the September 2025 quarter (Q2FY26), SBI’s asset quality stayed strong, with slippages easing to 0.6 per cent (vs 0.75 per cent in Q1FY26) and credit cost stable at 0.39 per cent, aided by consistent profitability and prudent balance sheet management. Management expects credit cost to remain below 60 bps with RoA anticipated at 1 per cent or above.

 

Focus on retail, agriculture, and MSME (RAM) segment with relatively resilient margins aided by diversified loan mix and consistent strong asset quality re-inforce robust operating profile. Thus, analysts at ICICI Securities in the Q2 result update said they revise target price to ₹1,120 (earlier ₹940), valuing standalone bank at ~1.4x and assigning ₹247 for subsidiaries. The brokerage maintains a 'Buy' rating on the SBI stock.

 

SBI has delivered a strong performance over recent years, supported by steady business and revenue growth alongside well-contained credit costs. The bank remains confident of outpacing industry loan growth, guiding for 13– 14 per cent growth in FY26, led primarily by the RAM segment. Margins have largely bottomed out, and the NIM outlook remains unchanged at >3 per cent, unless RBI delivers additional rate cuts. The credit costs of the bank to remain benign at 40–50bp over FY26–28, supporting a 10 per cent earnings compound annual growth rate (CAGR) over the same period, Motilal Oswal Financial Services said post a  management meet update. SBI remains preferred as a 'Buy' in the sector with a target price of ₹1,100 (premised on 1.3x Sep’27E ABV for the standalone bank + ₹293 for subsidiaries), the brokerage firm said.  ================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.