SBI – ₹7.4 Lakh Crore Giant With PSU DNA and Private Bank Swagger
1. At a Glance
State Bank of India is the asli baap of Indian banking. Market cap: ₹7.4 lakh crore. Deposits: ₹52 lakh crore. Loan book: ₹40 lakh crore. And still trades at a P/E of just 9×, because PSU tag = “discount sale.” ROE is 17%, NIMs at 3.2%, GNPA at 2.07%. Basically, it’s HDFC Bank with sarkari bureaucracy and a YONO app that crashes every Sunday night.
2. Introduction
SBI is older than your great-grandfather’s pension plan. With 200+ years of history, it has seen colonization, partition, socialism, liberalization, and even Paytm cashback wars. Through it all, it remained the default banker of India — salary account, loan approvals, and fixed deposits for generations.
It holds 22.5% deposit share and 19% loan share of the country. Imagine a cricket league where one team controls a fifth of all players — that’s SBI in Indian banking.
But here’s the twist: despite its size, SBI is not a boring PSU fossil. Its subsidiaries — SBI Life, SBI Card, SBI Mutual Fund — are rockstars in their categories. Its digital ecosystem handles 92% of transactions online, owns 25.8% of UPI market share, and disbursed 1.1 lakh digital loans in Q3 FY25.
The paradox is clear: SBI has private-bank level ambition but PSU-level headaches — regulations, penalties (RBI slapped ₹1.72 Cr fine recently), and government’s habit of doing OFS whenever fiscal math looks ugly.
Question: If SBI were privatized tomorrow, would its P/E still trade below Axis and ICICI, or shoot up like Adani stocks in a bull run?
3. Business Model – WTF Do They Even Do?
Retail Banking (37%) → Home loans, personal loans, SME loans. Basically, “ghar ka kharcha” of India runs through SBI.
Corporate Banking (23%) → Funding for PSUs, infra projects, and big corporates. Occasionally, also Yes Bank rescues.
Treasury (20%) → Manages bonds, forex, government securities. Where Excel sheets meet chai-samosa.
Insurance & Mutual Funds (17%) → SBI Life, SBI General, and SBI Funds. Together, they print fees and premiums like Bollywood prints sequels.
International Ops (15% advances, 4% deposits) → 241 offices across 29 countries. From Canada to Turkey — basically anywhere NRIs open remittance accounts.
SBI = Jio of banking: too big, everywhere, and your default option even if you wanted something else.
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹1,25,729 Cr
₹1,18,242 Cr
₹1,26,997 Cr
+6.3%
-1.0%
EBITDA
₹59,496 Cr
₹53,996 Cr
₹74,438 Cr
+10.2%
-20.1%
PAT
₹22,121 Cr
₹20,094 Cr
₹20,379 Cr
+10.1%
+8.5%
EPS (₹)
23.8
21.6
22.0
+10.2%
+8.2%
Commentary: PAT keeps growing double digits, EPS annualised at ₹95, which means even at CMP ₹804, SBI is chilling at ~8.5× P/E. Compare that to HDFC Bank’s 15–16× and laugh.
5. Valuation – Fair Value Range Only
P/E Method: EPS ~₹95 × 10–14× → ₹950–1,330.
PBV Method: BV ₹583 × 1.5–2.0× → ₹875–1,165.
DCF Method: Loan book CAGR 13%, COE 12%, g = 4% → ₹900–1,250.
🎯 Fair Value Range: ₹875–1,300.
Disclaimer: Educational only, not investment advice. Don’t @SEBI if you mortgage your house on this.
6. What’s Cooking – News, Triggers, Drama
Raised USD 500m bonds at 4.5% via London branch — global investor flex.
Raised ₹25,000 Cr via QIP in July 2025 at ₹817/share → dilution, but strengthens capital.
Divested stake in Yes Bank (13.2%) to SMBC for ₹8,889 Cr → finally moving on from its 2020 rescue child.
