Shares of State Bank of India (SBI) have surged to record highs, significantly increasing the value of its investors' holdings. Over the past year, SBI's stock has soared by 65%, reaching ₹1,154 per share on February 10, 2026. This surge has pushed SBI's market capitalization beyond ₹10 lakh crore, solidifying its position as the sixth most valuable company in the Indian stock market.

The surge in SBI's stock price has had a notable impact on the investment portfolio of Life Insurance Corporation of India (LIC), the country's largest insurer and asset manager. LIC holds a substantial 9.23% stake in SBI, making it the single largest institutional shareholder. With SBI's shares appreciating by 67.5% in the last year, the value of LIC’s investment in SBI has increased by ₹39,648 crore, bringing the total value of its holding to approximately ₹98,353 crore. LIC has been a major shareholder in SBI since 2015, consistently maintaining a stake above 8%. In July 2025, LIC further increased its stake in SBI from 9.21% to 9.49% through a Qualified Institutional Placement (QIP), investing ₹5,000 crore.

SBI's impressive performance in the third quarter of FY26 (October-December 2025) has fueled investor confidence. The bank reported a 24% year-on-year jump in standalone net profit, reaching ₹21,028 crore. This was supported by strong core income growth, improved asset quality, and a one-time boost from its IPO-bound asset management arm, SBI Mutual Fund, which paid a special dividend of ₹2,200 crore. Net interest income (NII) also saw a healthy increase of 9.04% to ₹45,190 crore.

The bank's asset quality has also shown significant improvement. Gross Non-Performing Assets (GNPA) declined by 12.71% year-on-year to ₹73,637 crore, and the GNPA ratio improved to 1.57% as of December 31, 2025, the best level in two decades.

SBI's robust financial performance and positive outlook have led to upward revisions in its growth targets. The bank has revised its loan growth target for FY26 to 13-15%, up from the previous 12-14%. This revision is driven by a rebound in corporate loan growth and sustained strength in the retail segment.

Analysts are optimistic about SBI's continued performance. The bank's ability to maintain Net Interest Margins (NIMs) above 3% in FY26 and beyond, supported by fee-based income, is expected to drive profitability. Motilal Oswal Financial Services (MOSL) has raised its earnings estimates for FY27 and FY28 and reiterated a "Buy" rating on SBI stock with a revised target price of ₹1,300.

While SBI's stock has experienced a strong rally in 2025 and early 2026, it's important to note that the banking sector is subject to market fluctuations and regulatory changes. Factors such as interest rate movements by the Reserve Bank of India (RBI) and evolving trade agreements could influence the bank's performance.