The shares of State Bank of India (SBI) soared nearly 7% on February 9, 2026, hitting a lifetime high of ₹1,141 after the lender reported its highest-ever quarterly profit for the December quarter. This remarkable performance pushed SBI’s market capitalization beyond ₹10 trillion, making it only the sixth Indian company to achieve this milestone.
Record-Breaking Financials
SBI posted a net profit of ₹21,028 crore in Q3 FY26, a 24.5% year-on-year increase compared to ₹16,891 crore in the same quarter last year. This achievement marks the highest quarterly profit in the bank’s history, driven by strong fundamentals across multiple segments:
- Loan Growth: The bank reported a 15% YoY loan expansion, prompting management to raise FY26 loan growth guidance to 13–15%.
- Net Interest Income (NII): Increased 9% YoY to ₹45,190 crore, reflecting robust lending activity.
- Operating Profit: Jumped 40% to ₹32,862 crore, supported by higher fee income and reduced provisioning.
- Asset Quality: Gross NPA ratio improved to 1.57% from 1.73% in the previous quarter, showcasing disciplined credit management.
Market Reaction
Investor enthusiasm was evident as SBI’s stock touched fresh highs across exchanges. Leading brokerages such as Jefferies, Morgan Stanley, and Motilal Oswal upgraded their target prices to ₹1,300, citing strong return on equity, improved asset quality, and value creation from subsidiaries. Analysts believe SBI’s performance cements its position as India’s largest and most resilient lender.
Sectoral Impact
SBI’s strong earnings had a ripple effect across the banking sector. Shares of other public sector banks also witnessed gains, with investors betting on improved credit demand and healthier balance sheets. Private sector peers such as HDFC Bank and ICICI Bank saw moderate traction, though analysts noted that SBI’s scale and diversified portfolio give it a unique edge in capturing growth opportunities.
Strategic Outlook
With consistent profitability, improved asset quality, and strong loan growth, SBI is expected to remain a cornerstone of India’s banking sector. The record earnings highlight the bank’s ability to navigate global uncertainties while capitalizing on domestic demand. Analysts suggest that SBI’s subsidiaries in insurance, asset management, and cards will further enhance shareholder value in the coming quarters.
Global Context
The rally in SBI also coincides with positive global cues. Optimism around trade deals and easing inflationary pressures in major economies have boosted investor sentiment worldwide. For India, SBI’s performance is seen as a reflection of the broader resilience of the financial sector, which continues to attract foreign institutional inflows.
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