SBI stock hits new high, outperforms market, gains 3% in 3 days; here's why

SBI stock trend: In the past one month, SBI has outperformed the market and rallied 6 per cent, as against 1.6 per cent decline in the BSE Sensex.

State Bank of India (SBI) share price today

 

Share price of State Bank of India (SBI) hit a new high of ₹1,026.80, gaining 1 per cent on the BSE in Tuesday’s intra-day deals. The stock price of the public sector bank was quoting higher for the third straight trading day, surging 3 per cent during the period.

 

In the past one month, SBI has outperformed the market and rallied 6 per cent, as against 1.6 per cent decline in the BSE Sensex. Further, in the past six months, the stock has zoomed 27 per cent, as compared to 1.95 per cent rise in the benchmark index.

 

 

At 10:04 AM; SBI was quoting 1 per cent higher at ₹1,023.75, as compared to 0.21 per cent decline in the BSE Sensex.  CATCH STOCK MARKET LIVE UPDATES TODAY 

What's driving SBI's outperformance?

 

SBI’s net advances grew by 12.7 per cent year-on-year (YoY) to ₹44.19 trillion as on September 30, 2025 (Q2FY26) from ₹39.20 trillion as on September 30, 2024. The increase was driven by the healthy credit offtake across segments such as retail personal, agriculture, small and medium enterprise (SME) and the corporate sector.  Gross NPA ratio was down by 5 bps on YoY basis to 0.19 per cent as on Q2FY26 and showing declining trend, underlining high quality of assets booked.

 

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 retail, agriculture, and MSME (RAM) segment, Motilal Oswal Financial Services (MOFSL) said post the management meet update.

 

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, the brokerage firm said.

 

Subsidiary value unlocking

 

In November 2025, SBI, the country’s largest lender, announced its decision to divest 32 million equity shares, being equivalent to 6.30 per cent of total equity capital of SBI Funds Management Limited (SBIFML) through Initial Public Offering (IPO), subject to regulatory approvals.

 

This IPO will unlock the value jointly created by SBI and Amundi, which will continue their successful long-term partnership in a fast-growing Indian market that presents significant development potential, SBI said.

 

With improving profitability, scale, and market depth, subsidiaries are well-positioned for a favourable market reception. In particular, the outlook for AMC valuations appears positive, supported by rising financialisation of savings and growing domestic investor participation. As equity markets deepen, SBI believes subsidiary valuations could see further rerating, strengthening the group’s valuation framework and providing incremental optionality to shareholders over time. Subsidiaries continue to make a significant contribution to the SBI’s valuation, MOFSL said.

 

SBI's Q3 results preview

 

Meanwhile, for the October to December quarter (Q3FY26), Kotak Institutional Equities expects operating profit of SBI to grow 7 per cent YoY led by lower treasury income. The brokerage firm is building 5 per cent YoY net interest income (NII) growth despite 12 per cent YoY loan growth due to higher cost of funds and pass through of recent rate cuts.  Fee income trends are strong in the previous quarter but its sustainability is the key, the brokerage firm said in the result preview.

 

Further, analysts expect slippages at 0.8 per cent of loans (normalisation of slippages over time) but no fresh concerns are likely on unsecured loans for the bank. “We are likely to see lower recovery and upgrades as well. Key discussion would be NIM and loan growth for the quarter,” 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.