State Bank of India Shares Hits New High (NSE: SBIN)

State Bank of India shares (NSE: SBIN) reached a new high of ₹891.85 today, continuing a positive trend observed throughout the year, with a year-to-date increase of 12%. This upward momentum reflects a combination of strategic decisions and robust financial performance that has bolstered market confidence in the banking giant.

The recent increase in SBI's share price can be attributed to several key factors. One significant event was the strategic sale of a 13.18% stake in YES Bank to Sumitomo Mitsui Banking Corporation (SMBC) for ₹8,889 crore in September 2025.

This divestment, executed at ₹21.50 per share, reduced SBI's holding in YES Bank to approximately 10.8%. The market has interpreted this move as a proactive optimization of SBI's investment portfolio, with analysts anticipating a 2–3% enhancement in SBI's book value as a result.

SBI's robust financial performance has further fueled the stock's ascent. The bank's standalone profit after tax for the quarter ended December 2025 demonstrated an impressive 84.32% surge, reaching ₹16,891.44 crore compared to ₹9,163.96 crore in the same quarter of the previous year. Net interest income (NII) also saw a 4% increase, climbing to ₹41,446 crore. Simultaneously, SBI has demonstrated improvements in asset quality, with the gross non-performing assets (NPA) ratio declining to 2.07% from 2.42% year-on-year. These strong financial indicators have collectively contributed to heightened market confidence.

The bank's market capitalization has also achieved significant milestones, surpassing ₹6 lakh crore in February 2024 and ₹7 lakh crore in March 2024. This growth positions SBI as the second most valued public sector undertaking (PSU) in India, trailing only Life Insurance Corporation (LIC). The consistent rise in market capitalization underscores the bank's strong market position, and further cements the market's trust in the stock.

Positive macroeconomic factors have also played a role in SBI's recent gains. The broader Indian stock market has been experiencing a rally, with benchmark indices like the Sensex and Nifty reaching new highs. This overall bullish market sentiment, driven in part by strong performances in the banking sector, including private banks such as Axis Bank, ICICI Bank, and HDFC Bank, has created a favorable environment for SBI shares. Notably, Axis Bank recently showed improved asset quality and lower credit costs.

While SBI's upward trajectory appears promising, it is essential to note that the banking sector remains subject to various economic and regulatory factors. Developments within other Indian banks, such as RBL Bank, which has seen its stock price climb on reports of Emirates NBD potentially acquiring a stake, highlight the dynamic nature of the industry.