Why SBI Share Price Is Rising Today: Key Reasons Explained

SBI share price is rising sharply today, with the stock trading up more than 6 percent. The rally is driven by strong Q3FY26 results that show better profits, improving asset quality, steady business growth, and a stronger balance sheet. The numbers clearly support the positive market reaction.

Strong Profit Growth Is Supporting the Stock

State Bank of India reported a net profit of ₹21,028 crore in Q3FY26, compared to ₹16,891 crore in the same quarter last year. This is a year-on-year growth of around 24.49%.

Operating profit rose to ₹32,862 crore from ₹23,551 crore, a jump of 39.54% on YoY basis. Higher operating profit indicates stronger core business performance and better cost management, which directly improves earnings quality.

Net Interest Income Remains Stable

Net interest income increased to ₹45,190 crore from ₹41,446 crore, registering a growth of over 9.04%.

Net interest margin stood at 2.99 percent, 2 bps points lower than last year. However, growth in loan volumes helped offset the marginal decline in margins. Stable net interest income shows that SBI’s core lending business continues to perform well.

Asset Quality Has Improved Significantly

Asset quality improvement is one of the key drivers behind the stock’s rally. Gross NPA declined from 2.07 percent to 1.57 percent, while Net NPA reduced from 0.53 percent to 0.39 percent. Lower bad loans reduce credit risk and improve future profit visibility, which is positive for bank valuations.

Higher Provision Coverage Improves Balance Sheet Safety

SBI strengthened its provision buffers during the quarter. Provision coverage ratio increased to 75.54 percent, while provision coverage including AUCA rose to 92.37 percent. Higher provisions improve balance sheet strength and reduce the risk of earnings shocks in future quarters.

Healthy Credit and Deposit Growth

Gross advances grew to ₹46.83 lakh crore, marking a year-on-year growth of over 15 percent.

Total deposits increased to ₹57.01 lakh crore, up about 9 percent year on year. This balanced growth indicates strong loan demand along with stable funding support.

Capital Position Has Improved

SBI’s capital adequacy ratio improved to 14.04 percent from 13.03 percent last year. A stronger capital base supports future growth and provides a buffer against economic uncertainty, which adds to investor confidence.

Digital Scale Is a Long-Term Advantage

Around 98.6 percent of SBI’s transactions are now conducted through digital channels. The YONO platform has over 9.6 crore registered users, and 68% of savings account opened through YONO in Q3FY26.

This digital scale helps control operating costs and supports profitable growth over time.

Why SBI Share Price Is Up More Than 6 Percent

• Strong profit growth in Q3FY26: Net profit rose by ~24% year on year, while operating profit jumped by nearly 40%, showing a clear improvement in core earnings and cost efficiency.
• Asset quality has improved sharply: Gross NPA declined from 2.07% to 1.57%, and Net NPA fell from 0.53% to 0.39%, reducing credit risk and improving earnings visibility.
• Higher provision buffer improves safety: Provision coverage ratio increased to 75.54%, and provision coverage including AUCA stood at 92.37%, strengthening the balance sheet against future stress.
• Healthy and balanced business growth: Gross advances grew by over 15%, while deposits increased by around 9%, indicating sustainable credit growth without funding pressure.
• Stronger capital position supports growth: Capital adequacy ratio improved from 13.03% to 14.04%, giving SBI more headroom to expand and absorb economic shocks.

Disclaimer

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities are quoted as an example and not as a recommendation. This is nowhere to be considered as an advice, recommendation or solicitation of offer to buy or sell or subscribe for securities. INDStocks SIP / Mini Save is a SIP feature that enables Customer(s) to save a fixed amount on a daily basis to invest in Indian Stock. INDstocks Private Limited (formerly known as INDmoney Private Limited) 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428. Refer https://indstocks.com/pricing?type=indian-stocks; https://www.indstocks.com/page/indian-stocks-sip-terms-and-condition for further details.