SBI up 6% in Jan, pips ICICI Bank in market cap ranking after 6 years

In the past six months, the stock price of SBI has surged 31 per cent, as compared to 10.2 per cent decline in market price of ICICI Bank and 8.6 per cent fall in HDFC Bank.

SBI surpasses ICICI Bank in market cap ranking

 

State Bank of India (SBI), the state-owned lender, has surpassed the private sector lender, ICICI Bank to regain the second-most valuable bank in terms of market capitalisation (market cap) after a gap of more than six years.

 

At 10:03 AM; SBI’s market cap stood at ₹9.60 trillion, as compared to ICICI Bank’s market cap of ₹9.57 trillion on the BSE, the exchange data shows. HDFC Bank has a market cap of ₹14.16 trillion, data shows.

 

Earlier, on August 6, 2019, SBI had a market cap of ₹2.69 trillion, while ICICI Bank’s market cap stood at ₹2.65 trillion.

 

SBI outperforms ICICI Bank, HDFC Bank

 

Currently, State Bank of India (SBI) stock was quoting 1 per cent higher at ₹1,040.30. The stock of public sector bank hit a record high of ₹1,055.35 on January 22, 2026. However, ICICI Bank share was quoting 0.33 per cent lower at ₹1,338.90, as compared to 0.25 per cent rise in the BSE Sensex.

 

SBI has outperformed the private sector lenders HDFC Bank and ICICI Bank in the recent past. Thus far in the month of January 2026, SBI has rallied 6 per cent, as compared to 4.2 per cent decline in the BSE Sensex. HDFC Bank and ICICI Bank have declined by 7.2 per cent and 0.30 per cent, respectively during the same period.

 

Further, in the past six months, SBI has surged 31 per cent, as against 0.90 per cent gain in the BSE Sensex. During the same period, the stock price of HDFC Bank slipped 8.6 per cent, while ICICI Bank was down 10.2 per cent.  CATCH STOCK MARKET UPDATES TODAY LIVE

Why has SBI outperformed Sensex, HDFC Bank, ICICI Bank?

 

Foreign institutional investors (FIIs) and foreign portfolio investors (FPIs) are showing strong interest in public sector banks, including SBI.

 

According to a shareholding pattern disclosed by the SBI, FIIs increased their holding in the bank to 10.34 per cent in December 2025 quarter, highest in the past one year. They held 9.57 per cent stake in SBI at the end of September 2025 quarter.

 

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. 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 the SBI management meet update. 

 

Meanwhile, 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, ICICI Securities said in a note.

 

According to S&P Global Ratings, India's financial institutions will continue to ride the country's good economic growth momentum. These entities will benefit from their domestic focus and structural improvements in the system such as in the recovery of bad loans. The rating agency in August 2025 rating rationale said that it expects India's banks to maintain adequate asset quality, good profitability, and enhanced capitalization over the next 12-24 months. This is despite some pockets of stress.  ALSO READ | Shriram Finance shares drop after Q3 profit slips 22% YoY; outlook here 

S&P Global Ratings forecast SBI's return on assets will stay at 0.9 per cent-1.0 per cent over the next two years, supported by the bank's contained credit costs amid a benign credit cycle in India. The rating agency sees a very high likelihood that the government would provide the bank with timely and sufficient extraordinary support in the event of financial distress.

 

“The stable rating outlook on SBI reflects that on the sovereign. We expect 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,” S&P Global Ratings said.

 

Meanwhile, 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).  =======================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.