Asset Quality Improvement
Expected: CurrentHIGH confidence
What: Gross NPA: 1.57%
Impact: Credit cost at 0.29%
“The NPAs continue to be at its lowest level in over two decades, which demonstrates the quality of our loan portfolio.”
State Bank of India: Stock Analysis & Fundamentals
Data from 3w agoState Bank of India (Banks - PSU) — fundamental analysis, earnings data, and key metrics. PE: 12.5. ROE: 17.2%. This stock is not currently in the Nifty 500 momentum outperformers list.
State Bank of India Key Facts
What's Happening
👔Promoter stake down 2.0% this quarter
🌐FII stake decreased 1.1% this quarter
🏛️DII accumulation — stake up 3.7%
Earnings Acceleration Triggers
1. Asset Quality Improvement
CurrentHIGH
2. Market Share Gains
CurrentMEDIUM
3. Demerger Spin Off Value Unlock
Not GivenMEDIUM
Key Risks
1. Implementation of Expected Credit Loss (ECL) guidelines and new LCR norms starti
MEDIUM2. Volatility in gold prices affecting the loan-to-value (LTV) ratios of the gold l
LOW3. Provisioning for the new labour code and actuarial assessments for pension
LOWSector-Specific Signals
Net Interest Margin (Domestic)3.12%
Gross NPA Ratio1.57%-50 bps
Net NPA Ratio0.39%-14 bps
Provision Coverage Ratio75.54%+88 bps
Key Numbers
Current Price
₹1,099
Dividend Yield
1.45%
Market Cap
10.1L Cr
Valuation
N/AWhy Are State Bank of India's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Market Share Gains
Expected: CurrentMEDIUM confidence
What: Current Account Growth: 10.32%
“The Current Account, we are predominantly seeing on the private side... that has given us current account uptick.”
Demerger Spin Off Value Unlock
Expected: Not GivenMEDIUM confidence
What: Subsidiary Listing: SBI AMC and SBI General
“SBI AMC and SBI General are right candidates for listing in our stable. It also provides some value unlocking.”
Operating Leverage Inflection
Expected: Next 2-3 yearsLOW confidence
What: Cost to Income Ratio: Below 50%
“Our objective is to keep the cost to income ratio below 50 bps. I think that guidance we had earlier given.”
Credit Growth of 15.14% vs 12-14% guidance.
HIGH confidence
What: Credit Growth of 15.14% vs 12-14% guidance.
“The credit growth was up 15.14% year-on-year as of December ‘25... The corporate credit has seen a rebound and has grown by 13.37%.”
Gross NPA improvement to 1.57%.
HIGH confidence
What: Gross NPA improvement to 1.57%.
“The asset quality continues to be industry-leading, with gross NPAs at 1.57%, improving by 50 basis points.”
Credit Growth guidance raised
HIGH confidence
What: 12% to 14% → 13% to 15%
“we are revising that upwards to 13% to 15% for the current quarter.”
What Are the Key Risks for State Bank of India?
Earnings deceleration risks from management commentary
Implementation of Expected Credit Loss (ECL) guidelines and new LCR norms starti
MEDIUMTrigger: RBI's proposed shift to ECL will require higher provisioning for standard assets (SMA 1 & 2).
Impact: PAT impact: Not explained on call
Management view: The bank plans to utilize the 4-year road map provided by the regulator to limit balance sheet impact.
Monitor: regulatory
Volatility in gold prices affecting the loan-to-value (LTV) ratios of the gold l
LOWTrigger: Rapid growth in gold loans (95% YoY) makes the portfolio sensitive to price corrections.
Management view: Management monitors LTVs daily; current average LTV is modest at 51-55%.
Monitor: commodity
Provisioning for the new labour code and actuarial assessments for pension
LOWTrigger: Changes in gratuity requirements for contractual employees and fluctuating discount rates.
Impact: PAT impact: ₹16 Cr for labour code
Management view: The bank is broadly in alignment with labour codes; pension provisions are based on actuarial assessments.
Monitor: labor
What Is State Bank of India's Management Saying?
Key quotes from recent conference calls
“So, the 12% to 14% guidance is across the segments, not necessarily Home Loans. [Previous Credit Growth guidance]”
“So, our guidance still stands good that we will be above 3% in Q3 and Q4. [Previous Net Interest Margin (NIM) guidance]”
“The new YONO represents a fundamental redesign of our digital operating model through YONOisation of the bank. [Initiative: YONO 2.0 / YONOisation]”
“CHAKRA, our Centre of Excellence for Sunrise Sectors, institutionalises our ability to support prudent capital allocation in emerging segments. [Initiative: CHAKRA (Centre of Excellence)]”
What Did State Bank of India Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹45,190 Cr
YoY +9%
Why: Growth was driven by a combination of containing the cost of resources and secular credit growth across all segments.
NII growth remained steady despite a competitive deposit environment.
EBITDA
₹32,862 Cr
YoY +39.54%
Why: Profitability improved due to higher operating profitability, moderated overhead costs, and lower credit costs of 0.29%.
Operating profit saw a sharp jump as the bank managed to keep staff costs broadly rigid.
PAT
₹21,028 Cr
YoY +24.49%
Why: The highest-ever quarterly net profit was driven by improved operating margins and a special dividend of ₹2,200 crore from SBI Mutual Fund.
PAT includes a significant one-off dividend contribution from a subsidiary.
Other Highlights
• Total business crossed the ₹103 trillion milestone for the first time.
• Credit costs reached a low of 0.29% during the quarter.
• Domestic Credit-Deposit ratio improved by 404 basis points year-on-year to 72.98%.
What Sector Metrics Matter for State Bank of India?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Net Interest Margin (Domestic)
3.12%
QoQ +3 bps
Why: Driven by containing the cost of resources and repricing of deposits.
Gross NPA Ratio
1.57%
YoY -50 bps
Why: Disciplined credit practices and sustained recoveries.
Net NPA Ratio
0.39%
YoY -14 bps
Why: Strong provision coverage and asset quality management.
Provision Coverage Ratio
75.54%
YoY +88 bps
Why: Prudent provisioning against the NPA book.
CASA Ratio
39.13%
Why: Healthy growth in current accounts (10.32%) despite a competitive market.
Capital Adequacy Ratio
14.04%
YoY +101 bps
Why: Internal capital generation and disciplined growth.
Credit Cost
0.29%
Why: Record low slippages and high recoveries.
Domestic Credit-Deposit Ratio
72.98%
YoY +404 bps
Why: Credit growth (15.14%) significantly outpaced deposit growth (9.02%).
AUCA Book Position
₹1,63,000 Cr
Why: Accumulated written-off accounts over time.
Liquidity Coverage Ratio
125%
Why: Maintaining adequate liquidity buffers.
What Is State Bank of India's Management Guidance?
Forward-looking targets from management for Through the cycle
OPM Guidance
3%
Margin Outlook
REAFFIRMED
Volume
RAISED
Management Tone: BULLISH
Guidance Changes
RAISED
Credit Growth: 12% to 14% → 13% to 15%
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: State Bank of India
Based on publicly available financial data. This is educational research, not investment advice.
What were State Bank of India's latest quarterly results?
State Bank of India's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +13.8%
- Revenue Growth YoY: +4.8%
- Net Interest Margin: -19.00%
- Gross NPA: 1.57%
What is State Bank of India's current PE ratio?
State Bank of India's current PE ratio is 12.5x.
- Current PE: 12.5x
- Market Cap: 10.1 Lakh Cr
- Dividend Yield: 1.45%
What is State Bank of India's price-to-book ratio?
State Bank of India's price-to-book ratio is 1.7x.
- Price-to-Book (P/B): 1.7x
- Book Value per Share: ₹641
- Current Price: ₹1099
Is State Bank of India a fundamentally strong company?
State Bank of India's fundamental strength based on key financial ratios
- Return on Equity (ROE): 17.0%
Is State Bank of India debt free?
State Bank of India has a debt-to-equity ratio of N/A.
- Total Debt: ₹6.5 Lakh Cr
What is State Bank of India's return on equity (ROE) and ROCE?
State Bank of India's return ratios over recent years
- FY2023: ROE 17.0%
- FY2024: ROE 17.0%
- FY2025: ROE 17.0%
Is State Bank of India's cash flow positive?
State Bank of India's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹48,000 Cr
- Free Cash Flow (FCF): ₹45,000 Cr
- CFO/PAT Ratio: 60% (adequate)
What is State Bank of India's dividend yield?
State Bank of India's current dividend yield is 1.45%.
- Dividend Yield: 1.45%
- Current Price: ₹1099
Who holds State Bank of India shares — promoters, FII, DII?
State Bank of India's shareholding pattern (Mar 2026)
- Promoters: 55.5%
- FII (Foreign): 11.4%
- DII (Domestic): 26.1%
- Public: 6.8%
Is promoter holding increasing or decreasing in State Bank of India?
State Bank of India's promoter holding has increased recently.
- Current Promoter Holding: 55.5% (Mar 2026)
- Previous Quarter: 55.5% (Dec 2025)
- Change: +0.02% (increasing — positive signal)
Is State Bank of India a new momentum entry or an established outperformer?
State Bank of India is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for State Bank of India?
State Bank of India has 7 key growth catalysts identified from recent earnings analysis
- Asset Quality Improvement — NPAs are at a two-decade low due to disciplined underwriting and sustained recoveries.
- Market Share Gains — Focus on private side business accounts has offset the decline in government business.
- Demerger Spin Off Value Unlock — Listing these entities will provide value unlocking and recognition for the industry.
- Operating Leverage Inflection — Digital scaling through YONO 2.0 and Project SARAL is expected to drive efficiency.
What are the key risks in State Bank of India?
State Bank of India has 3 key risks worth monitoring
- [MEDIUM] Implementation of Expected Credit Loss (ECL) guidelines and new LCR norms starti — RBI's proposed shift to ECL will require higher provisioning for standard assets (SMA 1 & 2).
- [LOW] Volatility in gold prices affecting the loan-to-value (LTV) ratios of the gold l — Rapid growth in gold loans (95% YoY) makes the portfolio sensitive to price corrections.
- [LOW] Provisioning for the new labour code and actuarial assessments for pension — Changes in gratuity requirements for contractual employees and fluctuating discount rates.
What did State Bank of India's management say in the latest earnings call?
In Q3 FY26, State Bank of India's management highlighted
- "So, the 12% to 14% guidance is across the segments, not necessarily Home Loans. [Previous Credit Growth guidance]"
- "So, our guidance still stands good that we will be above 3% in Q3 and Q4. [Previous Net Interest Margin (NIM) guidance]"
- "The new YONO represents a fundamental redesign of our digital operating model through YONOisation of the bank. [Initiative: YONO 2.0 / YONOisation]"
What is State Bank of India's management guidance for growth?
State Bank of India's management has provided the following forward guidance for Through the cycle
- Revenue outlook: Not Given
- OPM guidance: 3%
- Management tone: bullish
- Milestone: [RAISED] Credit Growth: 12% to 14% → 13% to 15%
What sector-specific metrics matter most for State Bank of India?
State Bank of India's most important sub-sector-specific KPIs from the latest concall
- Net Interest Margin (Domestic): 3.12% (QoQ +3 bps) — Driven by containing the cost of resources and repricing of deposits.
- Gross NPA Ratio: 1.57% (YoY -50 bps) — Disciplined credit practices and sustained recoveries.
- Net NPA Ratio: 0.39% (YoY -14 bps) — Strong provision coverage and asset quality management.
- Provision Coverage Ratio: 75.54% (YoY +88 bps) — Prudent provisioning against the NPA book.
- CASA Ratio: 39.13% — Healthy growth in current accounts (10.32%) despite a competitive market.
- Capital Adequacy Ratio: 14.04% (YoY +101 bps) — Internal capital generation and disciplined growth.
Is State Bank of India worth studying for long term investment?
Based on quantitative research signals, here is why State Bank of India may be worth studying
- Cash flow is positive — CFO ₹48,000 Cr
- Strong returns — ROE 17.0%
What is the investment thesis for State Bank of India?
State Bank of India investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Asset Quality Improvement
Risk Factors (Bear Case)
- Key risk: Implementation of Expected Credit Loss (ECL) guidelines and new LCR norms starti
What is the future outlook for State Bank of India?
State Bank of India's forward outlook based on current data signals
- Key Catalyst: Asset Quality Improvement
- Key Risk: Implementation of Expected Credit Loss (ECL) guidelines and new LCR norms starti
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.