SBI Stock Up 22% in 2026: Is the Rally Over or Just Getting Started?

Performance for the quarter ended December 2025 was robust.

SBI reported its highest-ever quarterly net profit. Credit growth came in at 15.11% YoY.

Asset quality remained strong. Gross non-performing assets (GNPA) stood at 1.57%, while net non-performing assets (NNPA) were 0.39%. Credit cost for the quarter was 0.29%.

These are among the lowest levels seen in a decade.

Valuations

Over the past ten years, SBI has traded at an average price-to-book value of around 1.28.

The maximum multiple during this period was 1.73, while the minimum was 0.77.

The stock is currently trading at 1.95 times book value - above its long-term average.

This suggests that markets are pricing in strong growth visibility.

What Next?

The management has revised its credit growth guidance for the March 2026 quarter from 12-14% to 13-15%. Domestic NIM was 3.12%. The guidance for the FY26 remains above 3%.

The bank expects to maintain its cost-to-income ratio around 50%. The focus remains on retail deposits rather than wholesale deposits.

SBI is also actively financing data centre projects. Its green energy loan exposure has reached Rs 1 tn.

Price Performance

In the past six months, it has risen 45%. Over the last one month, it is up 16%.

The stock touched a 52-week high of Rs 1,203.5 on Wednesday, 12 February 2026, and a 52-week low of Rs 679.6 on Monday, 3 March 2025.

Conclusion

India's economy continues to show resilience. Strong credit growth, driven by public and private capital expenditure, remains supportive.

The Union Budget has allocated Rs 12.2 tn towards capital expenditure, which may further strengthen credit demand.

SBI's digital initiatives, including upgrades to its YONO platform, are improving operational efficiency.

However, competition from private banks and fintech players remains a challenge. The next few quarters will determine if SBI can sustain its growth momentum - and justify its premium valuation.

About SBI

State Bank of India (SBI), a Fortune 500 company, is an Indian multinational and public sector banking and financial services entity headquartered in Mumbai. With a rich legacy, SBI has established itself as the most trusted bank for generations of Indians.

As the largest banking and financial institution in India, SBI boasts an asset base exceeding Rs 61 trillion (tn). Catering to more than 500 million (m) customers, its extensive network includes over 22,500 branches, 63,580 ATMs/ADWMs, and 82,900 business correspondent outlets.

The bank has successfully expanded its operations through various subsidiaries, such as SBI General Insurance, SBI Life Insurance, SBI Mutual Fund, and SBI Card. It also maintains a global presence with operations in 29 countries, managed through 241 offices.For more details, see the SBI company fact sheet and quarterly results.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions. To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy investing.

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