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State Bank of India (SBI) crossed a market capitalisation of ₹10 lakh crore, becoming the sixth Indian listed company to reach the valuation milestone and the only public sector enterprise to do so.

The milestone was achieved as SBI shares continued their upward momentum and touched fresh record highs. At current prices, the lender’s market value places it alongside Reliance Industries, HDFC Bank, TCS, Bharti Airtel, and ICICI Bank in India’s top valuation league.

Stock Price Rally Drives Market Cap Expansion

SBI’s market capitalisation has surged sharply over the past year, supported by a sustained rally in its share price. The stock has gained over 80% in the last 12 months, significantly outperforming benchmark indices and several private-sector peers.

For context, SBI’s market cap stood at around ₹3 lakh crore in early 2020, highlighting a more than three-fold increase in valuation within five years.

The sharp re-rating in SBI shares has been backed by strong financial performance. In FY24, SBI reported a net profit of over ₹61,000 crore, the highest ever by an Indian bank. Quarterly profits have remained elevated through FY25, supported by higher net interest income and controlled operating costs.

Net interest margins have remained stable despite interest rate volatility, while fee income from retail loans, cards, and digital banking has provided additional earnings support.

Asset Quality and Credit Growth

SBI’s asset quality has improved materially compared with previous cycles. Gross non-performing assets (GNPA) have declined to below 3%, while net NPAs are well under 1%, sharply lower than double-digit levels seen a few years ago.

On the growth front, SBI’s domestic loan book has expanded at a low double-digit pace, driven by retail loans, MSME credit, and selective corporate lending. Total advances now exceed ₹35 lakh crore, reinforcing SBI’s dominance in the Indian banking system.

With this milestone, SBI becomes the sixth Indian company to cross the ₹10 lakh crore market capitalisation mark. Notably, it is the only PSU in this group, underscoring a significant shift in investor perception towards large state-owned banks.

The combined market value of the five private-sector firms in this club exceeds ₹70 lakh crore, making SBI’s inclusion a landmark moment for PSU stocks.

Sector Context and Market Significance

SBI’s rise comes amid a broader rally in banking and financial stocks, which have been key contributors to benchmark indices. Banks now account for over one-third of the Nifty 50’s weight, reflecting their growing influence on market performance.

The milestone highlights how balance sheet repair, profitability recovery, and sustained credit demand have transformed SBI into a market heavyweight rather than a cyclical PSU play.