What has caused the recent decline in SBI share prices? Shares of State Bank of India (SBI) fell by 5.60%, closing at Rs 1,079.40 on the National Stock Exchange (NSE) on March 9, 2026. This drop resulted in a significant loss of nearly Rs 62,352 crore in market capitalisation, pushing SBI’s valuation below the Rs 10 lakh crore mark to approximately Rs 9.93 lakh crore.

The stock opened at Rs 1,111.10, compared to its previous close of Rs 1,143.55, and fluctuated throughout the day, reaching an intraday high of Rs 1,113.60 and a low of Rs 1,064.25. Over the past year, SBI’s share price has seen a high of Rs 1,234.80 and a low of Rs 719.20.

Despite this downturn, SBI reported a net profit of Rs 21,028 crore for the December 2025 quarter, reflecting a 24.5% year-on-year growth. The bank’s price-to-earnings (P/E) ratio stands at 12.97, while its price-to-book (P/B) ratio is 2.14.

The decline in SBI shares coincided with a broader sell-off in Indian equities, driven by geopolitical tensions involving Iran, Israel, and the United States, which have led to increased crude oil prices and heightened economic concerns. This context has contributed to the selling pressure observed across most PSU banking stocks.

Brokerage firm Motilal Oswal Financial Services remains optimistic about SBI’s long-term prospects, stating, “Despite the sharp fall, we are positive on the stock from a long-term perspective.” They noted that the stock is currently trading around Rs 1,192 with a target price of Rs 1,300, indicating a potential upside of about 9.1%.

Analysts continue to view SBI as a stable long-term PSU banking stock, citing steady profit growth and improving asset quality as key reasons for their positive outlook.

As the market reacts to these developments, investors will be closely monitoring SBI’s performance and any further implications of the geopolitical situation on the Indian economy. Details remain unconfirmed regarding the potential long-term effects of these market fluctuations on SBI’s share price.

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