SBI hits new high in weak market, mcap nears ₹9.5 trn; will touch ₹10 trn?

SBI's market capitalisation touched ₹9.45 trillion in intra-day deals on Tuesday.

State Bank of India (SBI) share price today

 

Share price of State Bank of India (SBI) hit a new high of ₹1,024, gaining 2 per cent on the National Stock Exchange (NSE) in Tuesday’s intra-day deals amid heavy volumes. In comparison, the Nifty 50 was down 0.30 per cent at 26,171.30 at 12:05 PM.

 

The stock price of the public sector banking giant was quoting higher for the sixth straight trading day, surging 6 per cent during the period. In the past six months, SBI has outperformed the market by soaring 27 per cent, as against a 2.7 per cent rise in the Nifty 50.

 

 

SBI’s market capitalisation nears ₹9.5 trillion; will it hit ₹10 trillion?

 

A sharp rally in the stock price of the public sector lender has seen the market captialisation of SBI inch towards ₹9.5 trillion. The bank’s market capitalisation touched ₹9.45 trillion in intra-day deals today. SBI’s market price is 11 per cent away to achieve ₹10 trillion market capitalisation. The stock price of SBI will have to cross ₹1,100 mark to touch the milestone.

 

Currently, among the banking space, HDFC Bank is on top of the ranking with ₹14.87 trillion market cap and ICICI Bank at the second position with ₹10.07 trillion market cap. 

 

Meanwhile, SBI remains Motilal Oswal Financial Services (MOFSL) preferred 'BUY' in the sector with a target price of ₹1,100 (premised on 1.3x September 2027E ABV for the standalone bank + ₹293 for subsidiaries).

 

SBI has delivered a strong performance over the 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 retail, agriculture, and MSME (RAM) segment. Margins have largely bottomed out, and the NIM outlook remains unchanged at >3 per cent, unless the Reserve Bank of India (RBI) delivers additional rate cuts. The rate cut of 25bp in December 2025 would influence yields only for 30 days, thus limiting the net interest margin impact. This can be cushioned against the benefits from the cash reserve ratio (CRR) cuts. 

 

Asset quality remains healthy, with tight control on the restructured book. The brokerage firm expects credit costs to remain benign at 40–50bp over FY26–28, supporting a 10 per cent earnings compound annual growth rate (CAGR) over the same period. Accordingly, analysts at MOFSL estimate SBI to deliver an RoA/RoE of 1.1 per cent/15.5 per cent in FY27 and 1.1 per cent/15.4 per cent in FY28.

 

Focus on 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 post SBI’s Q2 results revised the anticipated target price to ₹1,120 (earlier ₹940), valuing standalone bank at ~1.4x and assigning ₹247 for subsidiaries. The brokerage firm maintains a 'BUY' rating on the stock.

 

SBI’s management raised its credit growth guidance to 12–14 per cent for FY26E (from 11 per cent earlier), supported by a strong corporate pipeline at ₹7 trillion, with half already sanctioned and the remainder under discussion. Corporate lending momentum is expected to accelerate in H2FY26, led by private-sector capex in renewable energy, power, commercial real estate, and steel, which should sustain in FY27E, analysts 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.