Source NDTV profit
Mumbai: State Bank of India (SBI) has overtaken Tata Consultancy Services (TCS) in market capitalisation to become the fourth most valued company in India, marking a significant milestone for the country’s largest public sector lender. The development comes amid strong investor confidence in banking stocks and sustained gains in SBI’s share price.
Shares of SBI witnessed a steady rally in recent trading sessions, driven by robust quarterly earnings, improved asset quality, and healthy credit growth. The bank’s consistent performance, coupled with positive sentiment in the financial sector, pushed its market valuation ahead of TCS, one of India’s leading IT services companies.
Market analysts attribute SBI’s rise to a combination of strong loan growth, declining non-performing assets (NPAs), and improved profitability. The bank has also benefited from higher interest rates, which have supported net interest margins and boosted overall earnings. Investors have responded positively to the bank’s strategic focus on digital banking expansion and operational efficiency.
On the other hand, TCS has faced headwinds amid global economic uncertainties and slower technology spending in key international markets. The IT sector has experienced volatility due to concerns over reduced client budgets and cautious hiring trends, impacting stock performance across the industry.
SBI’s climb in rankings highlights the growing strength of India’s banking sector, which has shown resilience despite global challenges. The shift in market capitalisation positions underscores changing investor preferences, with financial institutions gaining traction over technology firms in recent months.
The latest development reshuffles the list of India’s most valuable companies, reflecting evolving market dynamics and sectoral performance trends. Analysts suggest that continued earnings growth and macroeconomic stability will play a key role in determining whether SBI can maintain its position in the coming quarters.
