SBI Shares Reach Record Peak Following Exceptional Quarterly Performance
The shares of State Bank of India (SBI) achieved a historic milestone on Monday, climbing to an unprecedented high after the banking giant unveiled its most impressive quarterly profit figures to date. The stock experienced a remarkable surge, escalating by 6.7% to reach Rs 1,137 on the Bombay Stock Exchange (BSE). This significant upward movement was directly fueled by the bank's outstanding financial results for the October–December quarter of fiscal year 2026.
Robust Financial Metrics Drive Market Confidence
State Bank of India reported a standalone net profit of Rs 21,028 crore for the third quarter of FY26, marking a substantial 24% increase compared to the same period in the previous year. This exceptional performance was primarily driven by consistent loan growth and stable net interest margins, which have bolstered the bank's financial standing.
By 11:54 am, SBI stock was trading at Rs 1,137.80, reflecting a gain of 71 points or 6.7% on the BSE. The bank's core lending activities remained firm, with Net Interest Income rising 9% year-on-year to reach Rs 45,190 crore. Furthermore, operating profit—calculated before provisions and contingencies—advanced by an impressive 40% from the same period last year, totaling Rs 32,862 crore. This growth indicates improved operational leverage and enhanced business efficiency.
Brokerages Maintain Positive Stance with Upgraded Targets
Financial institutions and brokerages tracking the lender have largely maintained optimistic recommendations, emphasizing the bank's strong loan growth, steady profitability, and comfortable asset quality. Several prominent brokerages have revised their target prices upward, reflecting increased confidence in SBI's future performance.
Motilal Oswal sustained its 'Buy' rating and elevated its target price to Rs 1,300, suggesting a potential 22% upside from current levels. The brokerage highlighted broad-based strength in SBI's performance, supported by business growth, margin expansion, and stable asset quality.
Nomura also retained its 'Buy' recommendation, setting a target of Rs 1,235. The firm pointed to resilient margins, which increased by 2 basis points sequentially and compared favorably with industry peers. Additionally, SBI's loan growth of 16% year-on-year was noted as surpassing competitors, even considering the bank's substantial base.
JM Financial reiterated its 'Buy' stance with a target price of Rs 1,250. The brokerage emphasized diversified growth, margins holding steady despite deposit pressures, leading asset quality, and significant provision buffers. These factors collectively provide enhanced visibility on earnings and balance-sheet resilience.
Nuvama Institutional Equities remained positive, raising its target price to Rs 1,250 while maintaining its Buy rating. The brokerage observed that for the third consecutive quarter, SBI's core earnings exceeded those of private sector peers, aided by stable margins, above-average loan growth, and robust fee income.
Valuation Justification and Future Outlook
According to analyst assessments, SBI's return on assets of approximately 1% or more, combined with a mid-teen return on equity profile, justifies a premium valuation relative to historical public sector bank benchmarks. The bank's consistent performance across multiple quarters has reinforced investor confidence and positioned it favorably within the competitive banking landscape.
The collective optimism from leading brokerages underscores SBI's strengthened market position and its ability to deliver sustained growth amid evolving economic conditions. As the bank continues to leverage its extensive network and operational efficiencies, market observers anticipate further positive developments in the coming quarters.
