Check Before You Invest : State Bank Of India

Q: Which industry/sub-sector does State Bank Of India belong to?

State Bank Of India belongs to the BFSI sector, operating specifically within the Bank - Public segment.

Q: Is State Bank Of India a good quality company?

State Bank Of India is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is State Bank Of India undervalued or overvalued?

State Bank Of India appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 10.97, Historic Median: 11.99. Price to Book, Current: 1.72, Historic Median: 1.76. Price to Sales, Current: 1.82, Historic Median: 1.63. EV to EBITDA, Current: 10.25, Historic Median: 9.79

Q: Is State Bank Of India a good buy now?

State Bank Of India is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of State Bank Of India?

State Bank Of India Total Income growth is 12.29% for FY-2025, which is above its 5-year CAGR of 11.62%, indicating faster growth.

Q: Return on Assets of State Bank Of India?

State Bank Of India Return on Asset is 1.1%, which is above its 5-year historical median of 1%, indicating improved earnings on assets. Efficiency & Key Metrics. NIM (%), Current: 2.7, Historic Median: 2.7. PPOP (%), Current: 26.09, Historic Median: 6.19. RoA (%), Current: 1.1, Historic Median: 1

Q: Return on Equity (ROE) of State Bank Of India?

State Bank Of India Return on Equity is 18.6% for FY-2025, which is in line with its 5-year historical median of 18.1%, indicating the business is making similar use of its shareholders capital.

Q: Pre-provisioning operating profit margin of State Bank Of India?

State Bank Of India Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 26.09% for FY-2025, which is above its 5-year median(6.19%), indicating increasing margins.

Q: Net Interest Margin of State Bank Of India?

State Bank Of India Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 2.7% for FY-2025, which is in line with its 5-year median( 2.7%), indicating stable margins.

Q: Does its ROIC exceed its WACC?

State Bank Of India return on invested capital (ROIC) is 28.06% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : State Bank Of India

BSE: 500112 NSE: SBIN ISIN: INE062A01020

| Sector: BFSI | Industry: Bank - Public

Snapshot

Q.1 Which industry/sub-sector does State Bank Of India belong to?

State Bank Of India belongs to the BFSI sector, operating specifically within the Bank - Public segment.

Q.2 Is State Bank Of India a good quality company?

State Bank Of India is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is State Bank Of India undervalued or overvalued?

State Bank Of India appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	10.97	11.99
Price to Book	1.72	1.76
Price to Sales	1.82	1.63
EV to EBITDA	10.25	9.79

Q.4 Is State Bank Of India a good buy now?

State Bank Of India is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NIM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth and Cost-to-Income ratio.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of State Bank Of India?

State Bank Of India Total Income growth is 12.29% for FY-2025, which is above its 5-year CAGR of 11.62%, indicating faster growth.

Q.2 Return on Assets of State Bank Of India?

State Bank Of India Return on Asset is 1.1%, which is above its 5-year historical median of 1%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NIM (%)	2.7	2.7
PPOP (%)	26.09	6.19
RoA (%)	1.1	1

Q.3 Return on Equity (ROE) of State Bank Of India?

State Bank Of India Return on Equity is 18.6% for FY-2025, which is in line with its 5-year historical median of 18.1%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of State Bank Of India?

State Bank Of India Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 26.09% for FY-2025, which is above its 5-year median(6.19%), indicating increasing margins.

Q.5 Net Interest Margin of State Bank Of India?

State Bank Of India Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 2.7% for FY-2025, which is in line with its 5-year median( 2.7%), indicating stable margins.

Q.6 Does its ROIC exceed its WACC?

State Bank Of India return on invested capital (ROIC) is 28.06% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of State Bank Of India?

State Bank Of India Total Asset growth is 8.03% for FY-2025, which is below its 5-year CAGR of 11.06%, indicating slower growth.

Q.8 Cost to Income ratio of State Bank Of India?

State Bank Of India Cost to Income ratio which represents the cost incurred for every Rs.100 earned is 51.6% for FY-2025, is in line with its historical 5-year median of 53.9%, indicating stable cost management.

C: How strong is the bank’s capital position and asset quality?

Q.9 Capital Adequacy ratio of State Bank Of India?

State Bank Of India Capital Adequacy ratio (CAR) is 14.3% for FY-2025, which is above the regulatory requirement of 12%, indicating strong capital position.

Q.10 Asset Quality of State Bank Of India?

State Bank Of India Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 1.82% for FY-2025, which is below its 5-year median 2.78%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 0.47% which is below its 5-year median( 0.67%), indicating improving asset quality.

Ownership & governance

D: Promoter shareholding and pledge status of State Bank Of India?

Q.1 Promoter shareholding and pledge status of State Bank Of India?

Promoters hold 55.52% of the State Bank Of India, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does State Bank Of India performance compare with that of its Peers?

Q.1 AUM Growth of State Bank Of India vs Industry Peers?

State Bank Of India AUM CAGR is 11.06%, compared to the 5-year industry median CAGR of 17.68%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NIM, PPOP, RoA) of State Bank Of India vs industry peers

State Bank Of India profit metrics are in line with the industry median level of 5.79%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NIM (%)	2.7	2.64
PPOP (%)	26.09	13.94
RoA (%)	1.1	0.8

Q.3 Operating efficiency of State Bank Of India vs industry peers?

State Bank Of India Cost to Income (53.05) is above the industry median of (49.7); while the current ROE (18.1) are above than the 5-year average Industry ROE (14.15). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NIM (%)	2.7	2.64
PPOP (%)	26.09	13.94
RoA (%)	1.1	0.8
Cost to Income (%)	51.6	49.7
ROE (%)	18.6	14.15

Valuation & price assessment

Q.1 Stock return of State Bank Of India over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 18.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	18.7%	18.9%	18.1%	21.1%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	10.97	11.99	10.61
Price to Book	1.72	1.76	1.12
Price to Sales	1.82	1.63	1.15
EV to EBITDA	10.25	9.79	5.06

Q.3 Valuation ratios of State Bank Of India vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 1.72 is lower than its historical median of 1.76, indicating that the stock is trading below its historical average valuation.

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Check Before You Invest : State Bank Of India

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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