India’s SBI Shares Rise to Record High After Beating Quarterly Profit Estimates and Raising Loan Growth Outlook

Shares of the State Bank of India climbed sharply on Monday to a record closing level after the country’s largest lender reported quarterly profit above market expectations and lifted its guidance for full-year credit growth, in a development that strengthened investor confidence in the banking sector.

SBI stock advanced 6 percent to an all-time high of ₹1,130 on the National Stock Exchange, outperforming broader indices. The share price was the top gainer on the benchmark Nifty 50 and bank indices, with state-owned banks also trading higher.

The bank reported stronger-than-expected earnings for the third quarter ended December 31, driven by robust loan demand and improving asset quality. Following the results, SBI raised its credit growth forecast for fiscal year 2026 to a range of 13 percent to 15 percent from the earlier guidance of 12 percent to 14 percent. Loan growth in the quarter reached 15.4 percent, reflecting strong traction from small and medium enterprises and retail borrowers.

Analysts said the revised outlook and profit beat underscored SBI’s position as a leading lender in India’s financial system. Emkay Global increased its price target on the stock to ₹1,225 from ₹1,100, signalling broader market support for the bank’s earnings momentum.

SBI’s asset quality also showed improvement, with the gross non-performing asset ratio easing to 1.57 percent in December compared with the previous year, industry data showed.

Market metrics show broad support among analysts for the stock, with 33 out of 38 tracking the share rating it “buy” or equivalent. Five analysts maintained a “hold” view, with the median price target suggesting a modest downside from current levels, according to LSEG data.

Despite the strong performance, some market participants noted that a narrowing valuation gap with larger private lenders could limit short-term upside in the share price, emphasising the need for sustained sector momentum.