SBI Share Price Hits Four-Week Low Amid Intensifying Selling Pressure

State Bank of India (SBI) Shares Plunge 3% Amid Rising Bond Yields

On March 13, SBI shares dropped 3% to a four-week low of ₹1,052.60 apiece, eroding ₹30,090 crore from its market value. The bank's market capitalisation now stands at ₹9,71,549 crore, down from ₹10,01,639 crore at its previous close.

Market Capitalisation Impact

The decline has pushed SBI's market capitalisation below ₹10 lakh crore, a significant drop from its peak of ₹11,39,628 crore. Life Insurance Corporation of India, the largest institutional shareholder with a 9.23% stake, has also seen its shareholding value impacted.

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Bond Yields and Treasury Performance

Rising bond yields, driven by the expectation of higher crude prices and inflationary pressures, may put pressure on SBI's treasury portfolios. Higher yields can lead to mark-to-market pressure on available-for-sale and trading portfolios, creating volatility in treasury income.

India's Bond Yields

India's benchmark 10-year government bond yield has risen to around 6.67% in today's session, after touching 6.76% earlier this week. The Reserve Bank of India has intervened in the secondary market, buying bonds to cap the rise in yields.

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SBI Share Price Trend

SBI shares have lost about 12% of their value in March so far, marking the biggest monthly drop since March 2020. However, the decline appears relatively modest when compared with the gains accumulated in recent months. Between March 2025 and February 2026, the stock witnessed an almost one-way rally, delivering a massive 75% return and emerging as one of the top performers among PSU banks.