SBI jumps on strong Q3 results, biggest single-day gain in 19 months
SBI jumps on strong Q3 results, biggest single-day gain in 19 months
State Bank of India charges higher after a robust December quarter, with loan growth beating peers and price targets lifting for a potential upside run.
Mumbai — State Bank of India surged more than 7% on Monday, marking its biggest single-day gain in 19 months after December quarter results beat expectations. The stock rose to ₹1,148, up 7.6% on the day, helping SBI top the Nifty gainers list as the broader index inched higher. Analysts credited a robust loan book and better-than-peer performance, which prompted price-target upgrades and a rush of bullish bets in SBI futures. The rally followed a quarter in which SBI reported stronger loan growth and improved asset quality, setting a positive tone for the PSU-lender space.
Loans grew 15.6% year on year, outpacing rivals HDFC Bank and ICICI Bank, and the bank raised its FY26 credit-growth guidance to 13-15% from 12-14%. Analysts highlighted that the bank's focus on risk management and operating efficiency supported a durable positive trajectory despite macro headwinds. Futures indicators showed a 14% jump in open interest, underscoring fresh bullish bets even after the gap-up; traders noted that the uptrend remains intact and pegged a near-term support around ₹1,080 with a longer-run target near ₹1,200.
Brokerages were quick to lift targets. Nuvama raised its target to ₹1,250 from ₹1,150 on SBI's standout December-quarter performance among large lenders, while others flagged continued upside if credit growth sustains and deposit momentum improves. SBI's six-month rise of about 39% contrasts with a more moderate market backdrop and reflects steady long build-up in recent derivatives series, suggesting investors are positioning for further gains.
Market watchers also pointed to the broader market backdrop supporting financials, with a steady appetite for value plays. While the rally in SBI is welcome, some analysts warn against over-optimism and highlight the need to watch deposit trends and margins. Still, SBI's earnings resilience and improving asset quality position the bank to extend gains into the quarters ahead.
Bottom line: SBI's Q3 numbers reinforce its leadership in Indian banking, and the stock’s rapid ascent signals investor confidence in sustained growth and stronger capital discipline.
