State Bank of India
SBI is India's largest bank by assets, a majority government-owned lender offering retail and corporate banking, deposits and credit, alongside subsidiaries in life insurance, cards and asset management.
- P/E ~10.2x
- P/B ~1.4x
- Down 21% from Feb 2026 peak
- ROE ~16-17%
- Gross NPA at multi-year low ~1.47%
Updated on 15 Oct 2026 · Data as of 15 Oct 2026
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Snapshot
- Share price
- ₹949.00
- 15 Oct 2026
- 52-week range
- ₹870.41 – ₹1,206.06
- All-time peak
- ₹1,206.06
- 23 Feb 2026 · −21.3% from peak
- Dividend yield
- 1.83%
- Price history since
- 1996
- About 30 years of prices
What's happening
Q2 FY27 (quarter ended September 2026) results are not yet out and are due by the SEBI outer deadline of November 14, 2026 - roughly four weeks from now. The most recent reported quarter, Q1 FY27 (April-June 2026), showed standalone net profit up 10.2% year-on-year to ₹21,121 crore and gross NPA improving to 1.47% from 1.83% a year earlier. The bank also completed a ₹25,000 crore QIP - the largest in Indian corporate history - in the preceding quarter to fund continued loan growth.
In plain terms
SBI is the government's flagship bank and the country's biggest lender, so owning the stock is really a bet on India's overall credit cycle rather than any niche business. The stock has fallen about 21% from its February 2026 high of ₹1,206 to around ₹949 today, even though profit growth and bad-loan ratios have kept improving over the same period. That gap between price and fundamentals is the thing to sit with: either the market is pricing in risks not yet visible in the numbers, such as margin pressure from falling interest rates, or the stock simply ran ahead of itself earlier in the year and is now resetting.
Quarters
Q1 FY27 (Apr-Jun 2026): standalone net profit ₹21,121 crore, up 10.2% YoY; net interest income ₹46,992 crore, up roughly 14-15% YoY; whole-bank NIM 2.86%, up 5bps QoQ; gross NPA improved to 1.47% from 1.83% a year earlier. In the prior quarter (Q2 FY26, Sep 2025), management had guided domestic NIM above 3% and raised FY26 loan-growth guidance to 12-14% from 12-13%, citing a pickup in corporate credit. No non-comparable or restated figures were flagged by the company in this period.
Performance
Heads-up on splits: State Bank of India has split its shares or issued bonus shares before (most recently 10-for-1 on 20 Nov 2014). A sudden price drop around a split date is usually just the price adjusting for the extra shares, not a crash.
Share price
+9.0% over 1 year
Returns by period
| Period | State Bank of India | Nifty 50 | Bank of Baroda |
|---|---|---|---|
| 3 months | −8.0% | −5.5% | −9.2% |
| 1 year | +9.0% | −10.1% | −13.3% |
| 3 years | +74.1% | +15.3% | +20.3% |
| 5 years | +108.3% | +23.2% | +182.1% |
₹100 invested on 18 Oct 2021 became…
- State Bank of India₹208
- Nifty 50₹123
- Bank of Baroda₹282
Over 1 and 3 years SBI has clearly beaten both the Nifty and PSU peer Bank of Baroda (1Y: +9% vs Nifty -10% and peer -13%; 3Y: +74% vs Nifty +15% and peer +20%). Stretch the window to 5 years, though, and it flips: SBI is up 108% against Bank of Baroda's 182% - the peer has actually been the better long-run performer despite SBI's stronger recent run. The stock is also sitting 21% below its February 2026 peak of ₹1,206. This is a straightforward price pullback, not a corporate-action artifact - the only entry on record is a 2014 10:1 stock split, already reflected in the price series, with no demerger or spin-off to adjust for.
Dividend
Paid in the last 12 months
₹17.35 per share
Dividend yield
1.83%
Dividend yield is the last 12 months of dividends divided by today's share price. A 1.8% yield means every ₹100 of State Bank of India shares paid about ₹1.8 in dividends over the past year. Past payouts can change.
Recent dividends
| Date | Per share |
|---|---|
| 15 May 2026 | ₹17.35 |
| 16 May 2025 | ₹15.90 |
| 22 May 2024 | ₹13.70 |
| 31 May 2023 | ₹11.30 |
| 25 May 2022 | ₹7.10 |
| 3 Jun 2021 | ₹4.00 |
| 26 May 2017 | ₹2.60 |
| 3 Jun 2016 | ₹2.60 |
Valuation
At roughly 10.2-10.6x trailing earnings and 1.43x book value, SBI trades at a clear discount to the broader financial services sector (median P/E near 15.5x). Why it's cheap: PSU banks are structurally discounted for government-ownership overhang, a history of deeper NPA cycles, and less capital flexibility than private banks - a standing sector feature, not a fresh red flag. Whether it's cheap depends on whether the recent asset-quality improvement (gross NPA down to 1.47%) and ~16-17% ROE prove durable; if so, the discount to private banks looks wide, but if NPAs are merely at a cyclical low, the discount is closer to fair.
Growth
Growth here is volume-led with margin only stabilizing, not expanding. Advances crossed ₹50 lakh crore and total business ₹110 lakh crore in Q1 FY27, with NII up 14-15% YoY - genuine double-digit book growth rather than repricing gains. NIM is inching up only slightly (2.86% whole-bank, +5bps QoQ), so margin isn't doing the heavy lifting; growth is predominantly volume-driven, funded in part by the recent ₹25,000 crore QIP.
Health
Asset quality, not cash conversion, is the right lens for a bank like this - gross NPA at 1.47% and net NPA near multi-year lows show the loan book cleaning up. The main risk here is business risk - how the credit cycle and interest-rate environment move NIM and loan growth - rather than financial/balance-sheet risk, since the QIP specifically addressed capital adequacy and reduced near-term solvency concerns.
Ownership
The Government of India, via the President of India, holds roughly 55% of SBI, having come down marginally after the recent QIP diluted the base. LIC is the largest non-government institutional holder at about 8.7%, alongside broad FII (~11%) and DII (~26%) ownership. As a PSU there is no conventional promoter pledging to worry about - the government does not pledge its shares - but there is also no marquee individual investor on the register; ownership is purely institutional and government-anchored.
The View
The one thing to watch
Whether the Q2 FY27 results, due by November 14, 2026, show domestic NIM holding above management's >3% guidance despite the ongoing rate-cut cycle - that will show whether the margin stabilization seen in Q1 FY27 is real or temporary.
Strengths
- +Gross NPA improved to 1.47% in Q1 FY27 from 1.83% a year earlier
- +Standalone net profit up 10.2% YoY to ₹21,121 crore in Q1 FY27
- +Outperformed both the Nifty and peer Bank of Baroda over 1Y (+9% vs -10%/-13%) and 3Y (+74% vs +15%/+20%)
- +Raised ₹25,000 crore via QIP, India's largest ever, strengthening capital for further loan growth
Watchpoints
- !Q2 FY27 results not yet released, due by the Nov 14, 2026 SEBI deadline - watch whether domestic NIM holds management's >3% guidance
- !Stock still 21% below its February 2026 peak of ₹1,206 despite improving fundamentals, a gap the market hasn't closed
- !Over a 5-year horizon peer Bank of Baroda has outperformed SBI (182% vs 108%), so recent outperformance isn't guaranteed to persist
- !Whole-bank NIM at 2.86% is rising only slowly (+5bps QoQ), leaving margin recovery sensitive to further rate cuts
How sure are we about the data? · Moderate
Quarterly profit, NII, NIM and NPA figures for Q1 FY27 were cross-checked across multiple independent sources (Business Standard, Kotak, Hellobanker, Multibagg) and are consistent. Valuation ratios vary modestly by source (P/E 10.04-10.86x, ROE 13.8-17.33%) depending on the trailing window used; the central range is reported. SBI's exact Q2 FY27 board-meeting date was not yet filed as of this search - only the outer SEBI deadline (Nov 14, 2026) is confirmed. Shareholding percentages reflect the most recently filed pattern and may have shifted slightly following QIP settlement.
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Ticker Tales is not a SEBI-registered investment adviser or research analyst. This report is for learning only and is not investment advice. Data as of 15 Oct 2026.