[Infographics] SBIN Stock | 8 Fundamental things you should know before investing in the State bank of India

State Bank of India is a Fortune 500 company. It is an Indian Multinational, Public Sector banking and financial services statutory body headquartered in Mumbai. It is the largest and oldest bank in India with over 200 years of history.

Financials – Public Banks

Large capital ₹4,52,031 Cr

Ratios

Capital Adequacy Ratio – 14.50%
Net Interest Margin – 3.34%
Gross NPA – 4.77%
Net NPA – 1.23%
CASA Ratio – 45.15%

Branch Network

Presently, the bank operates a network of 22,330 branches and 58,000 ATMs across India. It also operates 71,000 business correspondent outlets across India.

Market Share

The bank has a market share of 22.84% in deposits and a 19.69% share in advances in India. It has a strong customer base of 45 crore customers.

Loan Book

Retail loans account for 39% of the loan book, followed by corporate (37%), SME (14%), and Agriculture (10%).

Retail Book

Home loans account for 68% of the retail book, followed by Xpress credit (22%), auto loans (9%), personal gold loans (2%), and others (9%).

Exposure

The bank has a well-diversified loan book exposed to various sectors. Top sectors include home loans (23%), infrastructure (15%), services (12%), and agriculture (10%).
~75% of the corporate advances are rated A and better ratings from rating agencies. 38% of the corporate book accounts for PSUs & Govt. departments.

Segmental NPAs

Presently, the total NPAs of the bank stand at 1,17,244 crores. agriculture segment accounts for the major ratio of NPAs i.e. 13.71% of all loans are NPA. The corporate segment accounts for 59,400 crores worth of NPAs i.e. 51% of the total NPAs of the bank.

International Business

The bank has a global footprint with a network of 233 branches/offices in 32 countries. It has a presence in the USA, Canada, Brazil, Russia, Germany, France, Turkey, Australia, Bangladesh, Nepal, Sri Lanka, and other countries.
Presently, overseas business accounts for 3% of total deposits and 13% of total advances.

Government Business

SBI has always been the banker of choice to the government of India and is the market leader in government business. It had a turnover of ~52,50,000 lakh crores and commissions of ~3,700 crores from government business in FY20.

Financial Inclusion Business

The bank has ~71,000 BC outlets which have a primary focus on financial inclusion customers. The bank accounts for 40% of all PMJDY accounts i.e. more than 12 crore accounts.  Presently, the deposits from PMJDY accounts are ~42,500 crores i.e. 1.2% of the total deposits of the bank.

Digital Metrics

Increasing digitization resulted in ~40% of asset accounts and ~60% of liability customers added via digital channels in FY21. 67% of all transactions were initiated through digital channels in 2020 which is up from 58% in the previous year.

Subsidiaries Operations

The bank owns various subsidiaries which are engaged in related business activities

1. SBI Capital Markets Ltd (100% stake) – SBICAP is a leading investment banker, offering investment banking and corporate advisory services to clients across three product categories i.e. project advisory and structured finance, equity capital markets, and debt capital markets.
This company further has wholly-owned subsidiaries in related businesses viz. SBICAP Securities, SBICAP Trustee Co., SBICAP Ventures & others.

2. SBI DHFI Ltd (72% stake) – It is a primary dealer and supports the book building process and provides depth and liquidity to secondary markets in G-Sec. It also deals in money market instruments, non-G-Sec debt instruments, amongst others.

3. SBI Cards and Payment Services Ltd (69% stake) – It is a non-banking financial company that offers an extensive credit card portfolio to individual cardholders and corporate clients. It has a diversified customer acquisition network that enables to engage prospective customers across multiple channels.
The IPO of SBI Cards was launched in March 2020 wherein the company sold ~13 crore equity shares for a consideration of ₹10,350 crores.

4. SBI Life Insurance Co. Ltd (57.6% stake) – It is one of the leading life insurance companies in India which offers a wide range of individual and group insurance solutions that meet various life stage needs of customers.

5. SBI Funds Management Pvt Ltd (63% stake) – It is a JV between SBI and AMUNDI (France). It is an asset management company with the fastest CAGR of 33% against an industry average of 14% in the last 3 years.

6. SBI General Insurance Company Ltd (70% stake) – It is a general insurance company that focuses on profitable growth in the banc-assurance channel along with other distribution channels and lines of business. It is the first non-life insurance company in India to cross 6,000 crores in a decade of operations.

The amalgamation of Associate Banks

In March 2017, the bank acquired its 5 associate state banks and Bharatiya Mahila Bank by allotting 13.5 crore equity shares of SBI.

SBIN Today

STATE BK OF INDIA
SBIN.NS
₹ 460.55
-0.9782882%
Marketcap
4.11T
Volume
₹ 23,015,669.00
Shares
8,924,609,536
Range
₹ 458.00 - ₹ 477.25
52 Week Range
₹ 244.10 - ₹ 542.30
STATE BK OF INDIA
sector
Financial Services
industryBanks—Regional
addressState Bank Bhavan, Mumbai, India
countryIndia
phone91 22 2274 0841
websitehttp://www.sbi.co.in
STATE BK OF INDIA
₹ 460.55
Open ₹ 468.00
High ₹ 477.25
Marketcap 4.11T
Close ₹ 460.55
Low ₹ 458.00
Volume ₹ 23,015,669.00

SBIN Chart

SBIN Index presence

BANKNIFTYNIFTYSERVICENIFTY100WEIGHTNIFTYEQGTNIFTYFINANCE
NIFTY100NIFTY50NIFTY500NIFTYLEGMID250NIFTY200
LIQ15NIFTYPSUBANKNIFTYHIGHBETASENSEXBANKEX
BSE500SNSX50BSE100FINBSEPSU
BSE200LMI250ALLCAPLRGCAPBSE100LARGECAPTMC
BHRT22CARBONEXSPBSMOIPSPBSEVIPESG100

SBIN Infographics

SBIN Infographics by Kamlesh Rode created in Figma.com
SBIN Infographics by Kamlesh Rode created in Figma.com

Overview of SBIN

SBIN infographics - Overview
PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
20.1829.331.592.490.79%0.51%

Key Takeaways

  • Current price of SBIN stock is higher than the intrinsic value.
  • SBIN stock does not offer good dividend in return.
  • This stock didn’t gave good returns compared to fixed-deposit.
  • This stock is not in ASM/GSM list.

Read more about PE ratio with infographics | Read more about dividend and dividend yield with infographics

Financials of SBIN

SBIN Infographics - Financials

Income Sheet Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Total Revenue3,06,527.673,30,687.363,68,010.653,85,337.89
EBITDA-9,139.848,716.3933,978.1536,507.02
PBIT-12,244.915,220.5030,316.5932,795.96
PBT-12,244.915,220.5030,316.5932,795.96
Net Income-4,556.292,299.6619,767.8022,405.45
EPS-5.392.5822.1525.11
DPS0004
Payout ratio0000.16
EPS and DPS in ₹. Other numbers except for Payout Ratio in ₹ cr

Income Statements Takeaway

Lower than Industry Revenue Growth

Over the last 5 years, revenue has grown at a yearly rate of 7.1%, vs industry avg of 7.63%

Decreasing Market Share

Over the last 5 years, market share decreased from 41.4% to 40.39%

Key Points

  1. Total revenue has increased compared to previous year in State bank of India.
  2. Net Income has reached to 22 Thousands Crores.

Balance Sheet Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Current Assets1,95,289.112,25,512.262,54,315.263,47,707.03
Non Current Assets34,21,155.4636,62,951.9439,51,381.4445,07,359.87
Total Assets36,16,444.5738,88,464.2042,05,696.7048,55,066.90
Current Liabilities27,22,178.2829,40,541.0632,74,160.6337,15,331.24
Non Current Liabilities6,59,329.097,07,390.496,72,532.138,54,548.18
Total Liabilities33,81,507.3736,47,931.5539,46,692.7645,69,879.42
Total Equity2,34,937.202,40,532.652,59,003.942,85,187.48
Total Liabilities & Shareholder’s Equity36,16,444.5738,88,464.2042,05,696.7048,55,066.90
Total Common Shares Outstanding892.46892.46892.46892.46
Shares outstanding numbers in cr. Other numbers in ₹ cr

Lower than Industry Current Ratio

Over the last 5 years, the current ratio has been 8.5%, vs an industry avg of 11.25%

Cash Flow Statement Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Net Change in Cash-77,908.0530,223.1628,803.0093,391.77
Changes in Working Capital-1,63,132.12-38,809.03-52,814.274,184.93
Capital Expenditures03,005.513,065.013,828.02
Free Cash Flow-96,507.9126,550.5020,863.5286,090.91
All numbers in ₹ cr

Cash Flow Statement Key Takeaway

Higher than Industry Free Cash Flow Growth

Over the last 5 years, free cash flow growth has been 51.74%, vs an industry avg of 50.02%

Peers of SBIN

SBIN Infographics - peers
StockPE RatioPB RatioDividend Yield
State Bank of India20.181.590.79%
IDBI Bank Ltd37.321.5
Bank of Baroda Ltd32.240.6
Punjab National Bank19.30.53

Key Takeaways

  1. IDBI Bank have PE ratio of 37 which is more than SBIN.
  2. Only SBIN gives some amount of dividend yield to shareholders.

Shareholders of SBIN

SBIN Infographics - shareholding

Promoter Holdings Trend

Total Promoter Holding

In last 6 months, promoter holding in the company has almost stayed constant

Low Pledged Promoter Holding

Pledged promoter holdings are insignificant

Institutional Holdings Trend

Mutual Fund Holding

In the last 3 months, the mutual fund holding of the company has almost stayed constant

Foreign Institutional Holding

In last 3 months, foreign institutional holding of the company has almost stayed constant

InvestorsDec-18Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21
Promoters 58.5357.9257.8857.8857.6857.6357.6457.6357.6457.6357.6257.62
FIIs 9.379.8710.8510.8310.989.597.917.759.829.9410.3410.55
DIIs 24.5124.4823.7724.3524.5124.5524.725.2924.8824.424.1924.17
Government 0.050.050.050.050.050.110.20.20.20.20.150.15
Public 7.547.687.456.896.788.129.559.137.467.837.77.51

Dividend and Split

SBIN Infographics - Dividend

Dividend Table

Cash DividendDividend/ShareEx Date
Final₹4.003-Jun-21
Cash DividendDividend/ShareEx Date
Final₹2.6026-May-17
Cash DividendDividend/ShareEx Date
Final₹2.603-Jun-16
Cash DividendDividend/ShareEx Date
Final₹3.5028-May-15
Cash DividendDividend/ShareEx Date
Final₹15.0029-May-14

Read more about dividend and dividend yield with infographics

Bonus/Split Table

Share SplitRatioEx Date
Face Value Change from 10 To 11:1020-Nov-14

Key Takeaway

  1. Maximum dividend per share of Rs.15 given by SBIN stock in the year 2014.
  2. On 3rd June 2021 dividend of Rs.3 given to shareholder.
  3. SBIN gave stock split of Rs.1 face value on 20 Nov 2014

Strength and Limitations

Strength

  1. CASA stands at 45.40% of total deposits.
  2. The company has delivered good Profit growth of 72.32% over the past 3 years.

Limitations

  1. The bank has a very low ROA track record. Average ROA of 3 years is 0.29%
  2. Company has a low ROE of 5.64% over the last 3 years.
  3. High Cost to income ratio of 53.60%.

Expert Forecast

SBIN Infographics - Expert forecast

The stock forecast of SBIN stock for the year 2022

HIGH

Rs.725

MEDIAN

Rs.546

LOW

Rs.304

Future stock price targets of SBIN stock

Target of SBINFuture Stock Price
2022640 to 720
20251000 to 1100
20302800 to 3000
20356500 to 7200
204018000 to 22000

Please Note

These are the stock forecast or stock predictions solely based on historical data and related estimates by industry experts. Please do take advice from certified people and then go for investment.

Here predictions are just data for your information. We here declare that the stock forecast team does not responsible for any price changes or the price does not go expected. At last, it is solely based on how the stock market is running at that certain conditions.

Stock Forecast Predictions

SBIN Infographics - Stockforecast predictions

With the calculations on the basis of CAGR, the long-term investment in SBIN comes very amazing numbers. Look at the table below

Long term Prediction of SBIN StockInvestment of 10 Stocks worth Rs.51200
1 YearRs.63,334
5 YearsRs.1,48,292
10 YearsRs.4,29,504
15 YearsRs.12,43,986
20 YearsRs.36,02,997
25 YearsRs.1,04,35,481

Read How Rs.10,000 converted into 1770 Crores Wipro case study?

Conclusion

State Bank of India (SBIN) is one of the largest bank networks in India. Everybody knows how was SBI 10 years back and how it is today. It’s multiplying growth and many people in the stock market investing in this stock. SBIN was created in Faith in the market. It gives good returns in past and will be giving multifold returns in the future.

Key Metrics

PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
20.1829.331.592.490.79%0.51%

Check SBIN on NSE website

Frequently Asked Questions

Que: Is it a good time to buy SBI shares?

Ans: Yes, there is always a good time to invest in a fundamentally strong stock company. This company gives good returns in the past and also delivered post Covid-19 situation. We have given the targets of this stock. Please read the full post with fundamental details with SBIN infographics.

Que: Is SBI going to pay the 2020 dividend?

Ans: The current year is 2021 and a dividend of Rs. 4 is given by this company in June to the shareholders. It is a growing stock company, can give more dividends in the coming days.

Que: What is the target of SBI share?

Ans: Par our prediction, below will be the target price of SBIN Stock
In 2022 – 640 to 720
In 2025 – 1000 to 1100
2030 – 2800 to 3000
2035 – 6500 to 7200
2040 – 18000 to 22000

Que: Is SBI good stock to buy?

Ans: Yes, there is always a good time to invest in a fundamentally strong stock company. This company gives good returns in the past and also delivered post Covid-19 situation. We have given the targets of this stock. Please read the full post with fundamental details with SBIN infographics.

Que: How can I invest in SBI shares?

Ans: You can invest in this stock by Demat account. There are many Demat service provider companies. I love Zerodha. You can click the link here and create your Demat account in Zerodha. https://zerodha.com/open-account?c=ND6427

Que: Does SBI share a bonus?

Ans: Yes State Bank of India shares a bonus with the shareholders in 2014.

Que: Is SBI a good long-term investment?

Ans: Yes SBIN is a good company for long-term investments. We highly recommend SBIN.

Why Stock forecast by Kamlesh Rode?

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“I love to help people in technology, spirituality and always want people to get better in their lives. Today I’m a stock market enthusiast, a stock trader, web-mobile app developer, blogger, and a spiritual being.”

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