Mumbai, June 10, 2026, 22:32 IST
- State Bank of India barely budged on the NSE, finishing at ₹1,003.25, a modest uptick of 0.06%. Shares moved in a range from ₹999.50 to ₹1,012.40.
- SBI’s attention has shifted to dollar funding, now that the RBI rolled out its concessional swap facility and SBI announced updated FCNR(B) deposit rates for NRIs.
- The debate’s still alive. Loan growth and asset quality both appear solid, yet investors remain focused on net interest margins.
State Bank of India stock edged up to settle at ₹1,003.25 on the NSE Wednesday—a gain of just 55 paise, or 0.06%. Trading volume landed near 19.12 million shares. The price briefly hit ₹1,012.40 during the session before losing ground late, but still closed just north of ₹1,000, after a volatile stretch for bank stocks earlier this week.
Shares of SBI eked out a 0.06% gain, dodging the sector’s broader selloff as the Nifty PSU Bank index lost 1.39%. Only two stocks in the 12-member index managed to close higher, leaving the country’s biggest state-run lender among the rare names to stay in the green.
Investors aren’t fixated on SBI’s single-day move; their attention is on the funding dynamics sparked by the Reserve Bank of India’s latest foreign-currency steps. The RBI has rolled out a concessional swap facility for three- to five-year Foreign Currency Non-Resident Bank, or FCNR(B), deposits—essentially foreign-currency fixed deposits brought in by non-resident Indians. Through this swap window, banks can trade foreign currency with the RBI under predetermined conditions, which slices the cost of currency hedging.
SBI didn’t waste time. The lender’s updated rate card, out Wednesday, puts “SBI Advantage FCNR(B)” at 5.25% for deposits up to $1 million held three to less than four years, stepping up to 5.50% for four to under five years and 5.75% if parked for five years. If you’re placing more than $1 million, rates bump up: 5.50%, 5.75%, and 6.00% for the same periods. Withdrawals before a year? Not allowed. SBI Bank
SBI now has another path to tap into dollar funding, just as India’s currency and import expenses face strain. According to Reuters, certain banks hiked FCNR(B) deposit rates by up to 300 basis points—where 100 basis points make up a full percentage point—after the RBI stepped in to shoulder hedging costs. “RBI’s measures will definitely ease some of the forex pressure for banks,” Vikas Satija, managing director and chief executive officer at Shriram Wealth, told Reuters. Reuters
Tuesday’s jump set the stage for Wednesday’s slowdown. SBI climbed 2.1% on news from Reuters that banks benefited from the RBI swap facility, while Moneycontrol, citing Chairman C. S. Setty, reported SBI’s intention to list SBI General Insurance. Reuters added that SBI hadn’t responded to a request for comment.
Kotak Institutional Equities is holding to its buy call on SBI, setting the target at ₹1,250, per a Wednesday report in the Times of India. The analysts point to FY26 numbers: loan growth outpaced expectations and asset quality held up. Still, they’re cautious, noting persistent net interest margin compression could weigh. Net interest margin, the difference between what banks earn from lending and what they pay out for deposits, remains under pressure.
SBI’s internal FY26 figures keep the stock in focus. Net profit for the year landed at ₹80,032 crore, a 12.88% increase from last year. For Q4FY26, net profit stood at ₹19,684 crore. The lender’s advances jumped 16.87% and deposits climbed 11.03%. As for asset quality, the gross NPA ratio improved to 1.49%.
Margins are looking fragile. SBI posted a whole-bank NIM of 2.81% for Q4FY26, with its domestic NIM coming in slightly higher at 2.93%. Return on equity for FY26 landed at 18.57%. That’s the crux of the bull argument—the story only holds if SBI manages to sustain high returns while juggling pricier deposits and tougher competition for funds.
The RBI’s liquidity support might ease cash worries, but it doesn’t necessarily fix the profitability problem. SBI saw its market value skid by over $11 billion in just two trading days in May, after reporting a margin squeeze and missing fourth-quarter earnings, according to Reuters. Higher FCNR(B) deposit rates could attract more dollars, yet that money isn’t free—costs rise, and if lending yields lag behind, pressure on margins could persist.
The field is getting crowded. HDFC Bank, according to Reuters, bumped up rates to 6% for foreign-currency deposits with three- to five-year maturities. AU Small Finance Bank and Yes Bank? They’ve gone a step further, dangling 7% or higher on certain terms. So while SBI’s heft gives it an edge, pulling in deposits isn’t a given.
Banks aren’t getting much help from the broader market. On Wednesday, India’s main indexes barely budged—financial stocks made up for losses tied to fresh Middle East jitters. The Nifty 50 edged down 0.12% to 23,214.95, while the Sensex ticked up 0.09% to 73,983.18, according to Reuters. G Chokkalingam at Equinomics Research told Reuters that banks found some support from the concessional swap facility. Still, he warned benchmarks could remain under pressure if foreign outflows persist and imports of oil, fertilizer, and gold keep squeezing the market.
SBI shareholders now face a clear milestone: seeing just how much low-risk foreign-currency funding the bank can lock in before the RBI’s deposit window shuts for deposits raised through September 30. Another thing on the radar—will management finally offer a stronger timeline for the SBI General Insurance listing? For now, the stock hovering near ₹1,000 isn’t really a momentum story; it’s more a question of whether this fresh dollar-deposit drive can shield SBI’s return on equity from yet another squeeze on margins.
