State Bank of India (SBI) shares surge to record high, market cap tops ₹8.96 lakh crore; here is what analysts say

Shares of State Bank of India (SBI), the country's largest lender, rose as much as 1.44% to hit a record high of ₹971.40 on the National Stock Exchange a day after it reported its September quarter earnings.

With today's surge in SBI shares, the market capitalisation or the market value of its total shares surged to ₹8.96 lakh crore, data from National Stock Exchange showed.

The Mumbai-based lender on Tuesday reported a net profit of ₹20,160 crore in second quarter of current financial year, marking an increase of 10% from ₹18,331 crore in the same period last financial year.

Its Net Interest Income (NII) or the difference between interest earned on loans and expended on deposits rose 3% in July-September period to ₹42,984 crore from ₹41,620 crore in the year-ago period.

The bank’s Net Interest Margin (NIM) for the first half of the year stood at 2.93% for the whole bank and 3.05% for the domestic book.

SBI’s whole bank advances grew 12.73% driven primarily by domestic advances, which were up 12.32% annually. The foreign offices’ advances saw stronger growth of 15.04%.

Within the domestic portfolio, retail advances surged 15.09% led by SME loans which jumped 18.78%, followed by agriculture advances rising 14.23% and retail personal loans growing 14.09%. Meanwhile, corporate advances registered 7.10% rise.

On the liabilities side, total deposits increased 9.27% while CASA deposits grew 8.06%, with the CASA ratio at 39.63% as of September 30, 2025.

The bank's provisions for bad loans registered an uptick as it provided ₹4,132 crore in second quarter as against ₹3,631 crore a year earlier.

SBI's asset quality showed an improvement as its gross non-performing assets (NPA), as a percentage of total advances, came in at 1.73% versus 2.13% in the year-ago period.

Its net NPA improved to 0.42% from 0.53%.

In absolute terms, SBI's gross NPA stood at ₹76,243 crore as against ₹83,369 crore a year earlier.

Here is what global investment firms say on its Q2 earnings:

Global investment firms remained largely upbeat on SBI following its robust September quarter (Q2FY26) performance, with multiple firms raising earnings estimates.

Morgan Stanley (MS) said that NII came in better than estimates and profit after tax came in 15% above estimates, while asset quality remained strong. The lender’s Liquidity Coverage Ratio (LCR) improved to 144% from 139%, and CET-1 ratio rose to 12.5%. MS raised its FY26-28 EPS estimates by 8-9%.

HSBC noted that healthy loan growth and stronger revenue trajectory were key positives. The brokerage upgraded EPS forecasts by 6-9% for FY26-28, citing higher loan growth, margins, and fee income, and said SBI’s improved core PPoP trajectory justifies higher valuation multiples.

Nomura highlighted strong performance in NIMs and asset quality. It raised FY26 EPS by 6% (on one-offs) and FY27-28 estimates by 3-5%, expecting ROA/ROE of 1.1%/16% over FY27-28. Nomura increased its valuation multiple reflecting the stronger return outlook.

Jefferies said that SBI’s Q2 profit of ₹202 billion was up 10% YoY and ahead of estimates, driven by better NIMs, fees, and treasury income. Loan growth stood at 13% YoY versus 9% deposit growth. It expects loan and deposit growth to align by FY27, while low credit costs (0.5%) supported earnings. Jefferies also pointed to potential IPO/monetization of SBI AMC and SBI General Insurance as catalysts.

Citi said that ₹38.7 billion post-tax gain from the YES Bank stake sale boosted RoA above 1.15%, offsetting higher opex and provisioning. Management guided for 12–14% loan growth and NIMs above 3%, with minimal expected ECL impact and upcoming subsidiary listings.