At a Glance
State Bank of India (SBI), the grandpa of Indian banking with a 200+ year legacy, is still showing the young guns how it’s done. The bank just posted a FY25 profit of ₹80,523 crore while sporting a price-to-earnings ratio of 9.5—the stock market equivalent of “undervalued but too lazy to rerate.” Market cap? ₹7.38 lakh crore. Deposits? A mind-blowing ₹54.4 lakh crore. NPAs are now more controlled than your uncle’s drinking habits at weddings.
1. Introduction
SBI isn’t just a bank; it’s an institution that’s older than most family businesses. It has survived British rule, economic reforms, and even PSU stereotypes. Once known for endless queues and “come tomorrow” service, SBI has rebranded into a tech-savvy behemoth with YONO app and digital banking dominance.
With a deposit market share of 22.55% and loan market share of 19.06%, SBI literally decides the mood of Indian banking. FY25 saw it flexing profits, cutting NPAs, raising capital, and throwing in dividends like sprinkles. Yet, despite its size, the stock trades cheap. Why? PSU tag, baby.
2. Business Model (WTF Do They Even Do?)
The SBI business model is simple: be everywhere, serve everyone, and make money on scale.
- Retail Banking: Home loans, personal loans, education loans—basically financing your life decisions.
- Corporate Banking: Lending to businesses, sometimes those that forget to pay back (hello NPAs).
- Treasury: Investment portfolio fatter than a Diwali sweet box.
- Subsidiaries: SBI Life, SBI Cards, SBI Mutual Fund—each a money-printing machine on its own.
They collect deposits cheap, lend smart, invest wisely, and earn from every financial service under the sun.
3. Financials Overview
Let’s unpack the numbers:
- FY25 Revenue: ₹4,90,938 Cr (up 12%)
- Net Profit: ₹80,523 Cr (16% growth)
- EPS: ₹86.91 – not bad for a PSU.
- CASA: High and stable (exact ratio undisclosed, but above industry avg).
- Gross NPA: 2.13%, Net NPA: 0.52% – squeaky clean by SBI standards.
Commentary: Profit growth CAGR of 36% over 5 years?
