SBI market cap crosses Rs 9 trillion as stock gains 44% from March lows; MOFSL reiterates 'Buy' rating

SBI Share Price: State Bank of India (SBI) briefly entered a new territory on Monday, becoming the first public-sector lender to exceed a market value of Rs 9 trillion. The move came as the stock touched a fresh high of Rs 975.80 on the BSE during the morning session. Around 11:15 a.m., the shares were quoted at Rs 974.20, up 0.66 per cent.

SBI is now only the sixth Indian company to climb past the Rs 9 trillion mark. For the public markets, the milestone is symbolic: while the private banking giants—HDFC Bank and ICICI Bank—have long occupied this zone, no state-owned bank had managed to reach it until now. RIL, TCS and Bharti Airtel are the other members of this group.

Better than expected September quarter

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The stock has been on a strong footing for several weeks. Since mid-October, it has gained nearly 10 per cent, helped in part by better-than-expected earnings for the September quarter. The bank reported healthier margins, a rise in interest income and a one-time gain from reducing its holding in Yes Bank. That combination has allowed the stock to rebound sharply—by 44 per cent—from its 52-week low of Rs 679.65, recorded in early March.

The broader PSU banking space has also been active. The Nifty PSU Bank index has risen 26 per cent since September, with investors responding to a visible improvement in balance sheets, credit demand and asset quality across most lenders.

What is driving sentiment

SBI’s September-quarter net interest margin improved by 7 basis points quarter-on-quarter to 2.97 per cent. Loan growth held steady at 13 per cent year-on-year, led by retail and MSME lending. Credit costs remained low, and the management expects margins to recover further in the coming months as additional liquidity flows in after the recent CRR adjustment.

Brokerages have taken a broadly positive view of the bank’s trajectory. Motilal Oswal reiterated a Buy call and placed its price target at Rs 1,075, pointing to the bank’s strong credit pipeline, healthier capital position and consistent improvement in asset quality. Analysts also noted that public-sector banks, unlike in earlier cycles, appear more stable thanks to cleaner books and more prudent provisioning.

SBI’s climb past the Rs 9 trillion threshold, they said, reflects both its scale and the broader shift in sentiment towards state-owned lenders this year.