SBI pips TCS, takes 4th spot in market-cap ranking; stock up 10% in 3 days

At 11:55 AM on Wednesday; SBI's market cap stood at ₹10.78 trillion, as compared to TCS's market cap of ₹10.68 trillion on the BSE, the exchange data shows.

SBI surpasses TCS in market cap ranking today

 

State Bank of India (SBI), the state-owned lender, surpassed technology giant, Tata Consultancy Services (TCS) to become the fourth most valuable stock in terms of market capitalisation (market cap) on Wednesday.

 

At 11:55 AM; SBI’s market cap stood at ₹10.78 trillion, as compared to TCS’s market cap of ₹10.68 trillion on the BSE, the exchange data shows.  Earlier, SBI had overtaken private sector lender, ICICI Bank (₹10.05 trillion) in market cap ranking.

 

Currently, Reliance Industries stands at number one position with a market cap of ₹19.79 trillion, followed by HDFC Bank (₹14.27 trillion) at second rank and Bharti Airtel (₹12.11 trillion) at third position, data shows.

 

 

SBI hits new high, stock rallies 15 per cent in one month

 

Share price of SBI hit a new high of ₹1,174.80, as it rallied 3 per cent on the BSE in Wednesday’s intra-day trade. In the past three trading days, the stock has soared 10 per cent after the bank reported strong December quarter earnings (Q3FY26).

 

In the past one month, the stock price of the public sector bank has outperformed the market by surging 16 per cent. In comparison, the BSE Sensex was up 0.5 per cent during the same period.

 

On the other hand, in the past one month, TCS (down 9 per cent) and ICICI Bank (down 0.5 per cent) have recorded negative returns.

 

Why has SBI outperformed Sensex, TCS, ICICI Bank?

 

SBI’s earnings beat Street estimates by a decent margin. Additionally, SBI’s core earnings stayed stronger-than-private banks for a third consecutive quarter and has prompted some brokerages to lift their earnings estimates and price targets on the stock.

 

On Saturday, February 7, 2026, SBI reported its highest-ever quarterly profit of ₹21,028 crore — up 24.5 per cent year-on-year (Y-o-Y). Its net interest income (NII) increased 9 per cent Y-o-Y to ₹45,190 crore, while reported net interest margin (NIM) expanded 2 basis points (bps) to 2.99 per cent. However, when adjusted for interest on tax refunds, core NIM fell 1-bp quarter-on-quarter (Q-o-Q).

 

The management expects the recent regulatory guidelines by the Reserve Bank of India (RBI) to open up lending opportunities in real estate investment trusts (Reits) and merger & acquisition (M&A) financing, which will further scale up the already strong corporate funding pipeline. SBI has raised the upper end of its credit growth guidance to 13-15 per cent from 12-14 per cent, and maintained an exit NIM guidance of around 3 per cent for FY26.

 

Brokerages view on SBI post Q3 results

 

SBI’s performance has been the best amongst the larger banks, and the bank remains well-poised to sustain its performance, supported by the management’s focus on deepening its liability franchise, allocating capital to higher RoRWA assets, maintaining a resilient margin profile, and leveraging tech to drive operating efficiency, said analysts at Axis Securities.

 

SBI has upgraded its credit growth guidance to 13-15 per cent, driven by a strong corporate revival and resilient RAM momentum. The bank’s ability to maintain margins given its disciplined risk-adjusted pricing and continued focus on retail, granular CASA deposits should enable SBI to maintain margins at >3 per cent over the medium term, the brokerage firm said in the Q3 result update.

 

Strengthening the fee income profile along with controlled costs driven by operational efficiency, should support earnings growth. Moreover, asset quality remains at decadal best levels, with credit costs remaining benign, further extending support to earnings. Thus, collectively, these levers should ensure a comfortable RoA delivery of 1 per cent plus over FY26-28E, analysts said, adding, SBI remains a favoured pick amongst the larger banks. It maintains BUY recommendation on the stock with a target price of ₹1,280.

 

Strong and diversified growth, resilient margins despite deposit pressure, industry-leading asset quality, and large provision buffers underpin SBI’s improved earnings visibility and balance-sheet strength. Sustained ~1 per cent plus ROA and healthy mid-teen ROE profile warrant premium valuation vs. historical PSU bank valuations, analysts at JM Financial Institutional Securities said and maintain BUY rating with a revised target price of ₹1,250.  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.