SBI surpasses Rs 8 lakh crore market cap, reaches all-time high

State Bank of India (SBI) has achieved a significant milestone, becoming the seventh Indian listed company to surpass a market capitalisation (m-cap) of Rs 8 lakh crore. This landmark achievement underscores SBI's pivotal role in India's banking sector and its strong performance amidst challenging economic conditions.

On June 3, State Bank of India (SBI) shares reached an all-time high of ₹900.15 on the BSE, rising 8.3% during morning trade. This surge marks the bank's best trading day since September 2021, with its share prices having increased by over 40% year-to-date. The rally was driven by exit polls predicting a landslide victory for the BJP-led NDA government, bolstering investor confidence in SBI and other public sector unit (PSU) stocks.

SBI's market capitalisation surpassed ₹8 trillion for the first time, following a 8.4% surge in its share price to ₹899.55 during intraday trading. This milestone places SBI among other elite companies like Reliance Industries and Tata Consultancy Services. Analysts believe that the BJP's projected electoral victory, indicating continued government support for growth initiatives, is positively influencing the market, particularly for sectors like infrastructure and manufacturing.

Analysts at Nomura and Motilal Oswal are optimistic about SBI's future, predicting strong performance driven by stable margins and asset quality. They have set a target price of ₹925 per share, emphasising the bank's robust earnings turnaround from a loss of ₹65 billion in FY18 to profits of ₹611 billion in FY24. Recent results reflect this positive trend, with SBI reporting a 24% increase in net profit for Q4 FY24 and improvements in net interest income and asset quality.

State Bank of India's emergence as the seventh Indian listed company to surpass an Rs 8 lakh crore market cap is a testament to its strong fundamentals, strategic initiatives, and ability to adapt to changing market dynamics. As SBI continues to innovate and expand, it is well-positioned to maintain its leadership in India's banking sector and contribute to the country's economic growth.