State Bank of India (SBI) achieved a significant milestone as its market capitalization surpassed ₹8 lakh crore, driven by a remarkable surge in its stock prices. This achievement underscores the bank’s robust performance and reflects investor confidence in the banking sector amid favorable market conditions.
SBI’s Stock Rally and Market Cap Surge
SBI’s shares soared nearly 10% during trading, propelling its market capitalization beyond the ₹8 lakh crore mark for the first time. The surge in stock prices was fueled by a broader market rally, with benchmark indices reaching record highs amidst optimistic sentiments following the release of favorable exit polls.
Impressive Performance Metrics
SBI’s stellar performance is evidenced by its stock’s remarkable growth, with shares witnessing a surge of over 50% in the past six months. Additionally, the bank’s year-on-year net profit growth of 24% in Q4, along with a 3% rise in net interest income, surpassed analyst expectations. Furthermore, SBI’s asset quality has shown improvement, with a decline in gross NPA ratio to 2.24%.
Market Significance and Milestone Achievement
SBI joins an elite group of Indian listed entities with a market capitalization exceeding ₹8 lakh crore, highlighting its prominence in the market alongside industry giants such as Reliance Industries Ltd, HDFC Bank, and ICICI Bank. This milestone underscores SBI’s stature as a key player in the Indian financial landscape, with its consistent growth trajectory and strong fundamentals driving investor confidence and market performance.