The state-owned bank has been over-taken by Bajaj Finance with a market capitalisation of Rs 2,87,802.92 crore while the later stood at Rs 2,85,185.96 crore.
India’s largest lender State Bank of India is no longer on the list of 10 most valued companies in terms of market capitalisation on the Bombay Stock Exchange. The state-owned bank has been over-taken by Bajaj Finance with a market capitalisation of Rs 2,87,802.92 crore while the later stood at Rs 2,85,185.96 crore. State Bank of India (SBI) share price has seen a dip of almost 7 per cent since the start of this year and fell further on Monday as investors feared a rise in NPAs due to the lender exposure to the telecom industry.
Bajaj Finance, the company that sits at the 10th spot on the most valued companies list in terms of market cap on BSE has seen a strong performance on Dalal Street for a long time. Bajaj Finance share price in the calendar year 2019 jumped 60 per cent. Bajaj Finance reported a 52 per cent jump in profit for the quarter ended December 31, as net interest income (NII) and loan growth increased. NII grew by 42% to Rs 4,537 crore in Q3 of FY20 from Rs 3,206 crore in Q3 of FY19, the company had said in a BSE filing.
SBI, with an exposure of Rs 29,000 crore to the telecom industry, had reported its highest ever quarterly Net Profit in its results for the quarter ended December 2019. However, slippages of over Rs 16,000 crore which jumped 265 per cent on-year basis worried investors.
Emkay Global in a research note earlier last week had put a ‘buy’ call on Bajaj Finance with a target price of Rs 4,900. Currently, Bajaj Finance is trading at a price of Rs 4,768 apiece. Geojit Financial Services expects profit-booking by investors after Bajaj Finance shares hit 52-week-high on Friday. Bajaj Finance had taken over SBI in October as well for the 10th spot in terms of market valuation in October last year. The most valued company on BSE in terms of market capitalisation is Reliance Industries Limited with a market cap of Rs 9,42,422.58; followed by TCS, HDFC Bank, and Hindustan Unilever