Shareholders of SBI lose ₹62,350cr today: What's the reason?
What's the story
The shares of State Bank of India (SBI) plummeted by a whopping 5.6% to ₹1,079.40 on the National Stock Exchange(NSE) today. The fall has wiped out nearly ₹62,352 crore from the bank's market capitalization amid a broader market sell-off. The steep decline has brought SBI's valuation below the ₹10 lakh crore mark.
Market trends
Broader market trends and geopolitical impact
The BSE PSU Bank index also fell by 5.65% today, as Indian equities witnessed massive selling pressure. The trend was mainly due to rising geopolitical tensions between Iran, Israel, and the United States over the weekend. The conflict has led to a spike in crude oil prices, raising fears of possible pressure on the rupee and broader macroeconomic stability.
Market impact
Other PSU banks also face stock decline
The market sell-off wasn't limited to SBI alone. Other public sector banks such as Union Bank of India, Canara Bank, Punjab National Bank, and Bank of Baroda also witnessed a fall in their stocks by 4-6% during the session. This indicates a widespread weakness across PSU banking counters amid the prevailing market conditions.
Financial stability
Financial performance and valuation metrics
Despite the recent stock decline, SBI continues to trade at relatively reasonable valuations compared with the broader market. The bank has a price-to-earnings (P/E) ratio of 12.97, and a price-to-book (P/B) ratio of 2.14. On the financial front, SBI reported a strong performance in Q3 FY2026 with net profit rising to ₹21,028 crore during the quarter, an impressive 24.5% year-on-year growth reflecting stable operational performance.