CRISIL has reaffirmed its ‘AAA/FAAA/Stable/ A1+’ ratings on State Bank of India’s (SBI’s) debt instruments. The ratings continue to reflect the SBI group’s dominant market position in the Indian banking industry, strong resource profile, adequate capitalisation, and the expectation of strong support from its majority owner, the Government of India (GoI), both on an ongoing basis and in the event of distress. These rating strengths are partially offset by the group’s modest asset quality.
The SBI group is the largest player in the Indian banking sector, with a market share of around 25 per cent each in banking system’s deposits and advances. The group had consolidated deposits and advances of Rs 13.5 trillion and Rs 11.2 trillion, respectively, as on December 31, 2011.
