State Bank of India has overtaken ICICI Bank in market capitalisation to become India’s second-most valuable bank after nearly six years, driven by rising foreign investor ownership and sustained stock performance.
According to data from the BSE, at 10:03 am, SBI’s market capitalisation stood at ₹9.60 lakh crore, marginally higher than ICICI Bank’s ₹9.57 lakh crore. HDFC Bank remained the country’s most valuable bank with a market capitalisation of ₹14.16 lakh crore.
On August 6, 2019, SBI’s market capitalisation was ₹2.69 lakh crore, compared with around ₹2.65 lakh crore for ICICI Bank. In the subsequent years, private sector banks outpaced SBI, which remained behind for an extended period.
At the start of 2026, the positioning has shifted, with SBI surpassing ICICI Bank and re-establishing itself among the leading banks by market value.
In equity trading, SBI shares were up about 1 per cent at ₹1,040.30 during the session. The stock had touched an all-time high of ₹1,055.35 on January 22, 2026.
ICICI Bank shares were trading 0.33 per cent lower at ₹1,338.90. The Sensex recorded marginal gains during the session.
In January 2026 so far, SBI shares have risen by about 6 per cent, while the Sensex has declined by 4.2 per cent. During the same period, HDFC Bank shares have fallen by 7.2 per cent and ICICI Bank shares by 0.3 per cent.
Over the past six months, SBI shares have gained about 31 per cent. In comparison, the Sensex has risen by 0.9 per cent, while HDFC Bank shares have declined by 8.6 per cent and ICICI Bank shares by 10.2 per cent.
Foreign institutional and portfolio investors have increased their stake in SBI. In the December 2025 quarter, foreign investor holding in the bank rose to 10.34 per cent, the highest level in a year, compared with 9.57 per cent in the September 2025 quarter.
SBI’s business profile and financial position have also supported investor interest, with credit risk remaining under control. The bank has stated that it expects loan growth to outpace the industry and has guided for loan growth of 13 to 14 per cent in FY26, led by retail, agriculture and MSME segments.
Brokerage firm Motilal Oswal has said that SBI’s margins have reached a low point and that if there are no further interest rate cuts by the Reserve Bank of India, the bank’s net interest margin could remain above 3 per cent. The brokerage has also indicated that credit costs are expected to remain contained over the next few years.
SBI Chairman Challa Sreenivasulu Setty said that private investment could pick up once uncertainty related to global trade and US tariffs eases. He added that the bank is adding around ₹10 lakh crore of new business every year.
Rating agency S&P Global Ratings said that India’s economic growth will continue to benefit the banking sector. It expects SBI’s asset quality, profitability and capital position to remain resilient over the next 12 to 24 months. According to S&P, SBI’s return on assets could range between 0.9 and 1.0 per cent, with the likelihood of full government support if required.
Investor focus is now on SBI’s quarterly results. The bank has said its central board will meet in Mumbai on Saturday, February 7, 2026, to consider the financial results for the December 2025 quarter, or Q3FY26.
