The State Bank of India (SBI) has emerged as India's second-largest lender by market capitalisation, surpassing ICICI Bank during the January-March quarter of 2026.
Despite facing a slight decline of 0.3% in its market cap, SBI's value stood at ₹9,04,047 crore, overcoming ICICI Bank's more significant fall.
In the initial quarter of 2026, SBI surpassed its competitor ICICI Bank, ascending to become the second most valuable lender in terms of market cap.
The market value of SBI was recorded at ₹9,04,047 crore after a slight dip of 0.3%, whereas ICICI Bank suffered a sharper correction over 10%, according to data from S&P Global Market Intelligence.
During this period, the broader banking sector faced challenges, with 18 out of the 20 largest banks witnessing declines in their market capitalisations.
The widespread pressure on the banking sector was influenced by escalating geopolitical tensions in the Middle East. Even after a two-week ceasefire was announced on February 8 between the US and Iran, market sentiment remained fragile.
Foreign portfolio investors (FPIs) turned net sellers in March, selling $10.8 billion worth of Indian equities by March 18, underscoring the impact of global sentiments on domestic markets.
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Despite the broad sell-off, HDFC Bank retained its top position as the most valuable lender in India, closing the quarter with a market cap of ₹11,261 crore.
However, the stock faced pressure after its part-time chairman, Atanu Chakraborty, resigned on March 18, citing incongruencies with his values.
Individual bank performances varied, with IDBI Bank experiencing the steepest decline, dropping 40.3% in value.
SBI’s rise to the second position in market capitalisation reflects its resilience amid a challenging market landscape. While HDFC Bank continues to lead, SBI's ascent underscores significant shifts within India's financial hierarchy driven by domestic and global pressures.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 10, 2026, 8:43 AM IST
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