State Bank of India's market cap crosses Rs 8 lakh crore, stocks surge to all-time high

New Delhi [India], June 3 (ANI): The market capitalization of the State Bank of India (SBI) crossed the Rs 8 lakh crore mark on Monday after the bank's shares surged to a record high of Rs 907.
SBI is now the third-largest bank in India by market cap, very close to ICICI Bank which is second largest. The bank's market cap milestone was reached as shares rose over 9 per cent during a rally in the stock market, hitting an all-time high of Rs 909. Notably, SBI's shares have increased by more than 50 per cent in the last six months.
Finance Minister Nirmala Sitharaman has recently posted on social media that India's banking sector has achieved a significant milestone by recording its highest-ever net profit, exceeding Rs 3 lakh crore.
She also emphasized that the government will take decisive steps to further strengthen the banking sector. Insolvency and Bankruptcy Code introduced by the government has improved the financial conditions of Indian banks, with a recovery of Rs 10 lakh crore of bad loans.
"Between 2014 and 2023, banks recovered more than Rs 10 lakh crores from bad loans," she said.
The Nifty Bank index also surged to a record high on Monday, crossing the 50,000 mark for the first time.
The Nifty index touched a new high of 50,990, with all banking stocks in the index trading with gains at the time of filing this report.
In the recently released quarterly results, the State Bank of India has reported a standalone net profit of Rs 20,698.35 crore, which was 24 per cent up year-on-year (Y-o-Y), on the back of higher interest income and low provisions.
State Bank of India has reported a 15.24 per cent year-over-year (YoY) credit growth at the end of March 2024.
Domestic advances have grown by 16.26 per cent and corporate advances and agriculture advances grow by Rs 11 lakh crore and Rs 3 lakh crore, respectively. (YoY)
Foreign Offices' advances grew by 9.47 per cent, while retail personal advances and corporate loans registered YoY growth of 14.68 per cent and 16.17 per cent, respectively. (YoY)
Whole Bank Deposits grew at 11.13 per cent (YoY), out of which CASA Deposit grew by 4.25 per cent YoY. CASA ratio stands at 41.11 per cent as of 31st March 2024
The impressive performance of SBI and the overall banking sector highlights the investor confidence and the positive outlook for India's banking sector
The recovery of bad loans and the government's supportive measures have played crucial roles in strengthening the financial stability of banks, contributing to their recent achievements in market capitalization and net profit. (ANI)