Key Points:
- SBI Overtakes TCS to become India’s fourth-largest listed company with a market cap of ₹10.92 lakh crore, driven by strong Q3 results.
- The bank posted a net profit of ₹21,030 crore (18% above estimates), supported by higher fee income, stable margins, and improved asset quality.
- Banking stocks gained momentum while technology stocks weakened, reflecting a sectoral shift in investor sentiment.
State Bank of India has surpassed Tata Consultancy Services to become the fourth-largest listed company in India by market value. The shift follows a strong rally in SBI shares after its third-quarter results and reflects improving investor sentiment toward public sector banks.
Strong Earnings Drive Market Value Surge
SBI Overtakes TCS now holds a market capitalisation of nearly Rs 10.92 lakh crore, moving ahead of TCS, which stands at about Rs 10.52 lakh crore based on recent closing data. The top three listed companies in India remain Reliance Industries at Rs 19.87 lakh crore, HDFC Bank at Rs 14.16 lakh crore, and Bharti Airtel at Rs 11.47 lakh crore.
The change in rankings comes after SBI shares gained around 11% over the last three trading sessions. The rally followed the announcement of the bank’s third-quarter financial performance, which exceeded market expectations. During the same period, TCS shares declined nearly 4% over five days, amid weaker sentiment in technology stocks.
SBI reported a net profit of Rs 21,030 crore for the third quarter, marking an 18% beat over estimates. The performance was supported by higher fee income and lower provisions than anticipated. Net interest income rose 9% year on year to Rs 45,190 crore. Margins remained stable at 2.99%, while domestic margins improved to 3.12%.
Management indicated confidence in maintaining margins above 3% in the next financial year and over the longer term. This outlook added to positive sentiment among investors.
The bank’s loan book expanded 15.6% year on year, reflecting steady credit demand across segments. Deposit growth stood at 9%, indicating healthy traction, though slightly lower than loan growth. Asset quality showed improvement, with slippages moderating during the quarter. Credit costs remained contained at 29 basis points.
Divergence Between Banking And Technology Stocks
The recent market movement highlights a divergence between banking and technology counters. Banking stocks have seen renewed interest due to strong credit growth, improving balance sheets, and stable margins. Public sector banks in particular have benefited from better asset quality trends and operational efficiency.
In contrast, technology stocks have faced pressure amid concerns around artificial intelligence changes in global information technology services. Uncertainty around pricing and technology spending trends has weighed on investor sentiment in the sector. This has contributed to the relative underperformance of major information technology companies in recent sessions.
The broader rotation within the market reflects shifting investor focus toward sectors showing visible earnings strength. SBI’s strong quarterly results and steady operational metrics have supported its rise in market capitalisation rankings.
For Indian business leaders and entrepreneurs, the development signals renewed confidence in the banking sector’s fundamentals. Strong credit demand, stable margins, and disciplined asset quality management remain key drivers for financial institutions. At the same time, the shift also underlines how sector-specific trends can influence market leadership positions within India’s listed universe.
SBI Overtakes TCS in market value; the rankings underscore the importance of earnings momentum and sector sentiment in shaping capital market outcomes.
Visit Business Viewpoint Magazine for the latest information.
