State Bank of India shares rally over 3%: Here are the key factors behind the surge

At 11:39 AM, SBI shares were trading 3.15% higher at ₹822.60 apiece on the National Stock Exchange.

The Nifty Bank touched a record high on Monday after private lenders HDFC Bank and ICICI Bank released their financial results for the quarter ended March 2025.

The index climbed 1.66% to ₹55,195.95, its all-time high mark, as all components traded in the green.

State Bank of India was one of the top contributors on the NIFTY50 index as well as the NIFTY PSU Bank index.

India’s largest PSU bank has gained almost 10% in the last five trading sessions. Over a month, the stock has jumped 9%. Year-to-date, it has increased 3.5%.

The bank’s market capitalisation stands at ₹7.33 lakh crore.

SBI shares had been under pressure for some time, but it has rebounded after touching its 52-week low of ₹680 apiece on March 3, 2025.

Its 52-week high was attained on June 3, 2024, at ₹912 per share.

Last week, SBI had slashed its lending and deposit rates, making loans cheaper for borrowers and marginally reducing returns for depositors.

SBI reduced its Repo Linked Lending Rate (RLLR) by 25 basis points (bps) to 8.25%, and the External Benchmark Based Lending Rate (EBLR) has been cut to 8.65%, effective April 15, 2025, according to updated information on the bank’s website.

Investors are waiting for the State Bank of India's update on January-March quarter earnings.

SBI had posted an 84.32% surge in its standalone profit after tax to ₹16,891.44 crore in the quarter ended December 2025. In the year-ago quarter, the net profit was ₹9,163.96 crore.

The net interest income (NII) increased 4% to ₹41,446 crore in the third quarter of the financial year 2024-25, compared to ₹39,815 crore in the corresponding period last fiscal.

The bank's total income advanced 8.69% to ₹1,28,467 crore in the December quarter of the current fiscal year against ₹1,18,193 crore in the same period a year ago.

Its gross non-performing assets (Gross NPA) ratio improved by 35 basis points to 2.07% in the quarter under review, compared to 2.42% a year earlier. In the previous quarter, the gross NPA was 2.13%.

The net non-performing assets (Net NPA) ratio improved by 11 basis points to 0.53% in Q3 FY25 as against 0.64% in the same period a year ago. In the previous quarter, the net NPA was 0.53%.