Shares of State Bank of India (SBI) rallied strongly on Monday, climbing as much as 7% to a fresh 52-week high of Rs 1,136.85. The stock was trading over 6% higher in early trade, emerging as the top gainer on the Sensex and marking its biggest single-day gain since June 2024.
The rally followed the bank’s robust performance in the December quarter, where SBI reported a 24% year-on-year jump in net profit, comfortably beating market expectations. The lender also outperformed major private sector peers such as ICICI Bank and HDFC Bank in loan growth during the quarter, reinforcing its leadership position in the banking sector.
SBI’s management raised growth guidance for the next financial year, further strengthening investor sentiment at a time when concerns persist around sector-wide credit growth. Analysts highlighted that sequential loan growth was stronger than both public sector and large private banks, indicating solid demand and effective execution.
Brokerage firms also pointed to stable net interest margins, disciplined lending, healthy recoveries, and strong fee income as key drivers supporting earnings momentum. Improved asset quality has helped the bank maintain return on assets above 1% and return on equity above 20%, according to analyst commentary.
Following the results, several brokerages upgraded their target prices on SBI, with most maintaining bullish ratings. While analysts remain largely positive on the stock’s earnings outlook, some caution that much of the recent optimism may already be reflected in valuations. Going ahead, further upside in SBI shares is expected to depend on sustained earnings growth and continued loan momentum rather than additional valuation expansion.
