SBI regains ₹8 trillion m-cap; stock up 5% in 1 week; nears 52-week high

Shares of State Bank of India (SBI) rallied 2.5 per cent to ₹874 in intra-day trade is inching towards its all-time high level of ₹912.10, touched on June 6, 2024

State Bank of India (SBI) share price today hit a nine-month high of ₹874, as it rallied 2.5 per cent on the BSE in Tuesday’s intra-day trade. The stock price of the state-owned lender traded close to its 52-week high level of ₹875.5, touched on December 6, 2024. SBI is now inching towards its all-time high level of ₹912.10, which it had hit on June 6, 2024.

 

In the past one week, SBI has outperformed the market by surging 5 per cent after the bank completed the sale of its 13.18 per cent stake (4,130 million shares) in YES Bank to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) for ₹8,889 crore at ₹21.5 per share. In comparison, the BSE Sensex was down 0.52 per cent during the same period.

 

SBI regains ₹8 trillion market capitalisation

A sharp run-up in stock price has seen the SBI regain ₹8 trillion market capitalisation. With ₹8.05 trillion market capitalisation, SBI was quoting 2 per cent higher at ₹872.15 on the BSE, the exchange data shows.

 

Currently, besides SBI, there are five listed companies having a market capitalisation of more than ₹8 trillion. Reliance Industries is at the top of the list with a market capitalisation of ₹18.82 trillion, followed by HDFC Bank (₹14.77 trillion), Bharti Airtel (₹11.64 trillion), Tata Consultancy Services (₹11.11 trillion) and ICICI Bank (₹9.98 trillion).

What’s driving SBI stock price?

On Wednesday, September 17, SBI said the sale was executed after SMBC secured the necessary approvals from the Reserve Bank of India (RBI) on August 22, 2025, and from the Competition Commission of India on September 2, 2025. This reduces SBI’s holding in YES Bank to about 10.8 per cent. 

 

The deal will increase SBI’s book value by around 2-3 per cent, which seems factored into SBI’s valuation. Going forward, SBI’s steady performance is expected to keep pushing its valuation upwards, according to ICICI Securities.

 

Meanwhile, analysts anticipate a reduction in interest rate, GST reform, and the festive season to revive credit off-take, while the repricing of deposits and the benefit of CRR cut are expected to aid an uptick in margins. On the asset quality front, a few segments, including unsecured retail, witnessed slippages; however, credit cost remains at an acceptable level. SBI is the top pick, ICICI Securities said.

 

SBI's capital infusion of ₹25,000 crore in July 2025 will bolster its capital. SBI's risk-adjusted capital will also benefit from lower risk weights because risks are recalibrated to reflect India's improved economic environment and the upgrade of the sovereign. The bank's RAC ratio should therefore improve to 7.0 per cent-7.5 per cent over the next 24 months, from 5.9 per cent as of March 31, 2024, S&P Global Ratings said.

 

The stable rating outlook on SBI reflects that of the sovereign. The global rating agency expects the bank to maintain its market leadership in India's banking sector over the next two years. SBI's funding and liquidity will stay strong, supported by high customer confidence.

 

According to S&P Global Ratings, the bank's asset quality will remain better than the Indian sector average and comparable to that of similarly rated international peers. SBI's capitalization is adequate, though slightly weaker than that of private sector banks in India.