This PSU Bank Overtakes TCS in Terms of Market Cap

In a significant reshuffle among India’s most valuable listed companies, State Bank of India (SBI) has overtaken Tata Consultancy Services (TCS) to become the country’s fourth-largest company by market capitalisation. This shift follows a powerful rally in SBI shares, fuelled by record-breaking Q3 FY26 earnings, while TCS faced sustained pressure amid a broader downturn in IT stocks. As of February 11, 2026, SBI’s market valuation reached Rs 10.92 lakh crore, surpassing the Rs 10.52 lakh crore valuation of the IT giant.

The stock price performance of the two giants has diverged sharply in early 2026. SBI shares surged more than 0.5 per cent on February 12, hitting a fresh 52-week high of Rs 1,203.70 per share. The banking stock has rallied approximately 11 per cent over just three trading sessions. Conversely, TCS shares fell 5.39 per cent to close at Rs 2,755.20, contributing to a year-to-date decline of nearly 14 per cent. This slump in the IT sector is largely attributed to investor concerns regarding AI-led disruptions in global services.

SBI’s ascent is backed by its highest-ever quarterly profit, reporting a standalone net profit of Rs 21,028.15 crore for Q3 FY26. This represents a robust 24.49 per cent year-on-year growth. The bank's operating profit rose by 39.54 per cent to reach Rs 32,862 crore, while Net Interest Income (NII) climbed 9.04 per cent to Rs 45,190 crore. These figures highlight an improved business model and better operating efficiency, resulting in a healthy Return on Equity (ROE) of 20.68 per cent for the first nine months of the fiscal year.

The bank’s loan book showed accelerating momentum across all major segments. Total advances grew 15.14 per cent to surpass Rs 46.8 lakh crore, with the SME segment leading the charge with a 21.02 per cent jump. Retail personal advances also saw a 14.95 per cent increase, with home loans maintaining a dominant 27.9 per cent market share. Based on this strong traction, SBI management has upgraded its domestic loan growth guidance to a range of 13-15 per cent, up from the previous 12-14 per cent.

On the liability side, SBI's total deposits grew 9.02 per cent to cross the massive milestone of Rs 57 trillion. This growth was supported by a 10.32 per cent increase in Current Account balances, maintaining a healthy CASA ratio of 39.13 per cent. Despite the aggressive growth in lending, the bank has managed to keep its margins stable, reporting a domestic Net Interest Margin (NIM) of 3.12 per cent, which has been a key factor in its overall profitability.

Crucially, SBI has achieved its best asset quality in over two decades. The Gross NPA ratio improved to 1.57 per cent, down 50 basis points from the previous year, while the Net NPA ratio stood at a lean 0.39 per cent. With credit costs contained at just 0.29 per cent and a total business volume crossing Rs 103 trillion, the bank’s fundamentals remain robust. This performance reflects a broader market rotation where investors are moving away from technology and toward banking stocks that offer cleaner balance sheets and strong credit growth.

Disclaimer: The article is for informational purposes only and not investment advice.