State Bank of India
SBIN • Annual Report Analysis
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Annual Report Disclosure Summary: State Bank of India (SBIN)
Date: March 16, 2026
Current Price: ₹1,067.00
FY: 2025
Executive Summary
State Bank of India (SBIN) (NSE: SBIN) reported total revenue of ₹6,63,343 crore and a net profit of ₹77,561 crore for FY2025. The bank operates as a universal lender with a network of over 22,000 branches, serving approximately 480 million customers. Key segments include Retail Banking (including a lead position in home loans), Corporate Lending, and digital operations via the YONO platform. The Government of India holds a 56.92% stake in the entity. Key metrics disclosed in the FY2025 Annual Report are presented below alongside publicly available industry reference benchmarks. This document presents data disclosed in the company's FY2025 Annual Report. All benchmarks referenced are publicly available industry standards. This is not investment advice.
Business Profile
Business Model & Revenue Engine
The annual report discloses that State Bank of India operates as a universal bank. Its revenue is primarily derived from the Net Interest Margin (NIM)—the difference between interest earned on loans and interest paid on deposits. In FY2025, the bank reported total revenue of ₹6,63,343 crore. The credit portfolio includes retail, MSME, agriculture, and corporate segments. Additionally, the bank operates subsidiaries in life insurance (SBI Life), credit cards (SBI Card), and asset management (SBI Mutual Fund).
Market Position Disclosures
The annual report and exchange filings disclose the following market position data:
- Deposit Base: CASA ratio of 39.0%.
- Loan Market: The bank reports a lead in the home loan segment, with a portfolio size exceeding that of HDFC Bank by ₹8,000 crore as of the reporting date.
- Digital Infrastructure: The YONO app is disclosed as the primary digital ecosystem for integrated banking and third-party services.
- Transaction Volume: The bank processed 5.2 billion UPI transfers during the period.
- Competitive Landscape: The Indian banking sector includes major listed peers such as HDFC Bank and ICICI Bank (Source: NSE Sectoral Classification).
Strategy Disclosures
The Directors' Report outlines a strategy focused on AI-driven predictive forecasting and outbound sales. The bank has disclosed a credit growth target range of 12–15% CAGR through 2027, with specific focus on MSME clusters and secured retail segments.
Key Financial Metrics — Above Reference Benchmarks
The FY2025 annual report discloses a net profit of ₹77,561 crore, representing a 15.6% increase over the previous financial year.
- Interest Coverage Ratio: Reported at 10.36x. [EDUCATIONAL NOTE: The Interest Coverage Ratio measures a company's ability to pay interest on its outstanding debt. In a banking context, it reflects the cushion between operating earnings and interest expenses.]
- Promoter Pledging: The Shareholding Pattern disclosure confirms 0.0% of promoter shares are pledged.
- Management Remuneration: Disclosed at 0.0008% of net profits.
- Capital Adequacy Ratio (CAR): Reported at 14.44%. [EDUCATIONAL NOTE: CAR is a measurement of a bank's available capital expressed as a percentage of its risk-weighted credit exposures. The regulatory minimum under Basel III norms in India is typically 11.5% including CCB.]
Key Financial Metrics — Below Reference Benchmarks
The annual report and legal disclosures identify the following data points:
- Operational Integrity: The report notes ongoing legal proceedings and convictions secured by the CBI and CID regarding localized loan frauds in specific branches (Hyderabad and Lucknow).
- Liquidity Buffer: The bank’s internal liquidity metrics indicate a survival buffer of 0.88 months based on current operating expenses of ₹48,815 crore per month.
- CFO/Net Profit Ratio: Reported at 0.63. [EDUCATIONAL NOTE: The CFO/PAT ratio measures the proportion of accounting profit realized as actual cash from operations. A ratio below 1.0 in banking often reflects the deployment of cash into a growing loan book (assets) which are recorded as outflows in the cash flow statement.]
- Leverage: Debt-to-equity ratio is reported at 1.25x.
Material Disclosures & Contingencies
| Category | Annual Report Disclosure / Fact | Benchmark Reference |
|---|---|---|
| Promoter Integrity & Ethics | Supreme Court censure recorded in 2024 regarding Electoral Bond data disclosures. | Zero regulatory/judicial infractions. |
| Promoter Shareholding | 56.92% held by Government of India; 0% pledged. | Source: Shareholding Pattern Filing. |
| Board Independence | 41.6% of the board consists of independent directors. | SEBI (LODR) benchmark: 50% for companies with a non-executive chairperson. |
| Financial Transparency | Statutory Audit reports and Notes to Accounts for FY2025. | Standard Accounting Practices (Ind-AS). |
Valuation Multiples — Reference Data
Valuation data as of March 16, 2026:
| Metric | Reported Value | Industry/Peer Reference (Public Data) |
|---|---|---|
| PE Ratio (TTM) | 11.8x | Sector Average: 12.6x; ICICI Bank: 18.3x; HDFC Bank: 17.2x |
| P/B Ratio | 1.63x | Sector Average: 1.45x; Historical Median: 1.1x |
| Dividend Yield | 1.47% | Sector Average: 1.30% |
| PEG Ratio | 1.5x | Sector Average: 1.8x |
Annual Report Data Summary — Key Metrics
| Metric | Value | Reference Benchmark |
|---|---|---|
| Net Profit Margin | 11.69% | Industry standard: >10% |
| Interest Coverage | 10.36x | Industry standard: >5x |
| Net NPA | 0.47% | RBI Threshold: <1.5% (for Tier 1) |
| CASA Ratio | 39.0% | Industry reference: >35% |
| Capital Adequacy | 14.44% | Regulatory Minimum: 11.5% |
| ROE | 17.2% | Industry reference: >15% |
| GNPA | 1.82% | Industry reference: <3% |
| PCR | 74.42% | RBI reference: >70% |
| Net Interest Margin | 3.09% | Peer range: 3.0% - 4.5% |
Material Disclosures & Contingencies (Risk Log)
- Government Ownership Disclosure: The bank is 56.92% owned by the State. Source: Shareholding Pattern.
- Interest Rate Sensitivity: Debt-to-equity ratio of 1.25x is disclosed in the financial statements. Source: Balance Sheet.
- Digital Infrastructure Contingency: The bank processes a significant volume of UPI and digital payments via the YONO platform. Source: Management Discussion & Analysis.
- Legal Proceedings: Disclosures regarding branch-level fraud cases and judicial observations regarding political funding disclosures. Source: Notes to Accounts / Legal Disclosures.
- Leadership Succession: Appointments and tenures for top management are determined by the Financial Services Institutions Bureau (FSIB) and the Government of India. Source: Corporate Governance Report.
Key Disclosures to Review in Next Filing
□ Net Interest Margin (NIM): Review for maintenance above the 3.0% threshold.
□ SME Asset Quality: Monitor Gross NPA (GNPA) trends in the MSME/SME loan book.
□ Digital Loan Volume: Review growth in personal loans disbursed via YONO 2.0.
□ CFO/PAT Ratio: Monitor the conversion of accounting profits into operating cash flow.
Annual Report Data Summary
The FY2025 annual report for State Bank of India discloses revenue of ₹6,63,343 crore and a net profit of ₹77,561 crore. The bank maintains a Net NPA of 0.47% and a Provision Coverage Ratio of 74.42%. Governance disclosures highlight 0% promoter pledging and a board composition of 41.6% independent directors. Valuation multiples as of March 16, 2026, include a PE of 11.8x and a P/B of 1.63x. Reference industry benchmarks and peer data points are provided in the respective sections above for comparative context.
IMPORTANT NOTICE: This document is a structured presentation of data disclosed in State Bank of India's FY2025 Annual Report and publicly available exchange filings. It is produced by stockread.in for informational and educational purposes only. All benchmarks referenced are standard industry metrics sourced from publicly available financial literature. This document does not constitute a research report, investment advice, a buy/sell/hold recommendation, or any form of securities analysis as defined under the SEBI (Research Analysts) Regulations, 2014. stockread.in is not a SEBI-registered Research Analyst. Users are strongly advised to consult a SEBI-registered Investment Advisor or Research Analyst before making any investment decision. Past financial performance is not indicative of future results.