BSE:500112

Stock Analysis Report

State Bank of India

Executive Summary

State Bank of India provides various banking products and services to individuals, commercial enterprises, corporates, public bodies, and institutional customers in India and internationally.

Rewards

Earnings are forecast to grow 40.9% per year

Became profitable this year

Risk Analysis

No risks detected for 500112 from our risk checks.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has State Bank of India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500112 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.6%

500112

-2.8%

IN Banks

-3.9%

IN Market


1 Year Return

11.0%

500112

5.3%

IN Banks

4.5%

IN Market

Return vs Industry: 500112 exceeded the Indian Banks industry which returned 6.1% over the past year.

Return vs Market: 500112 exceeded the Indian Market which returned 5.2% over the past year.


Shareholder returns

500112IndustryMarket
7 Day-7.6%-2.8%-3.9%
30 Day-4.3%-3.5%-3.9%
90 Day-11.4%-7.9%-2.1%
1 Year11.0%11.0%5.7%5.3%6.4%4.5%
3 Year15.3%14.2%10.7%9.5%19.4%12.8%
5 Year6.8%3.2%5.9%2.5%28.2%16.6%

Price Volatility Vs. Market

How volatile is State Bank of India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is State Bank of India undervalued compared to its fair value and its price relative to the market?

20.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500112 (₹321.95) is trading above our estimate of fair value (₹155.74)

Significantly Below Fair Value: 500112 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500112 is poor value based on its PE Ratio (20.4x) compared to the Banks industry average (16.9x).

PE vs Market: 500112 is poor value based on its PE Ratio (20.4x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 500112 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 500112 is overvalued based on its PB Ratio (1.2x) compared to the IN Banks industry average (0.6x).


Next Steps

Future Growth

How is State Bank of India forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

40.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500112's forecast earnings growth (40.9% per year) is above the savings rate (6.5%).

Earnings vs Market: 500112's earnings (40.9% per year) are forecast to grow faster than the Indian market (20.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500112's revenue (14.3% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 500112's revenue (14.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500112's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has State Bank of India performed over the past 5 years?

-34.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500112 has high quality earnings.

Growing Profit Margin: 500112 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 500112's earnings have declined by -34.2% per year over the past 5 years.

Accelerating Growth: 500112 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 500112 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Banks industry (25.5%).


Return on Equity

High ROE: 500112's Return on Equity (6.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is State Bank of India's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 500112 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 500112's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: 500112's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if 500112 has a sufficient allowance for bad loans.

Low Risk Liabilities: 500112's liabilities are made up of primarily low risk sources of funding.

Loan Level: 500112 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 500112's loans are broadly funded by customer deposits.

Level of Bad Loans: 500112 has a high level of bad loans (7.37%)


Next Steps

Dividend

What is State Bank of India's current dividend yield, its reliability and sustainability?

1.86%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.7%industryaverage0.4%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 500112's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 500112's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500112's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500112's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 500112 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500112's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

Challa Setty (54yo)

0.08yrs

Tenure

0

Mr. Challa Sreenivasulu Setty has been Managing Director and Director at State Bank of India since January 20, 2020 and served as its Deputy Managing Director of Stressed Assets Resolution Group until Janu ...


Leadership Team

NamePositionTenureCompensationOwnership
Parveen Gupta
MD of Retail & Digital Banking and Director4.3yrs₹2.99m0.000050% 1.4m
Dinesh Khara
MD of Global Banking & Subsidiaries and Director3.5yrs₹2.81m0.000030% 862.0k
Arijit Basu
MD of Commercial Clients Group & IT and Director0yrs₹2.65m0.000010% 287.3k
Challa Setty
MD & Director0.08yrsno datano data
Prashant Kumar
Deputy MD of HR and Corporate Development Officer & CFO1.4yrsno datano data
Bommana Babu
Deputy MD & COO0yrsno datano data
D. Tambe
Deputy MD & Chief Information Officer0yrsno datano data
Mahindra Kumar
Deputy GM0yrsno datano data
Sanjay Abhyankar
VP of Compliance3.5yrsno datano data
Siddhartha Sengupta
Deputy Managing Director of International Banking Group5.8yrsno datano data

2.6yrs

Average Tenure

58.5yo

Average Age

Experienced Management: 500112's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Parveen Gupta
MD of Retail & Digital Banking and Director4.3yrs₹2.99m0.000050% 1.4m
Dinesh Khara
MD of Global Banking & Subsidiaries and Director3.5yrs₹2.81m0.000030% 862.0k
Arijit Basu
MD of Commercial Clients Group & IT and Director0yrs₹2.65m0.000010% 287.3k
Challa Setty
MD & Director0.08yrsno datano data
Chandan Sinha
Director3.4yrs₹830.00k0.000010% 287.3k
Sanjiv Malhotra
Director5.7yrs₹935.00k0.00021% 6.0m
Bhaskar Pramanik
Independent Director2.7yrs₹1.11m0.00017% 4.9m
Rajnish Kumar
Chairman of the Board2.3yrs₹2.95m0.000010% 287.3k
Girish Ahuja
Director4.1yrs₹265.00k0.000030% 862.0k
Pushpendra Rai
Director4.1yrs₹965.00kno data

3.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 500112's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

State Bank of India's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: State Bank of India
  • Ticker: 500112
  • Exchange: BSE
  • Founded: 1806
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ₹2.873t
  • Shares outstanding: 8.92b
  • Website: https://www.sbi.co.in

Number of Employees


Location

  • State Bank of India
  • State Bank Bhavan
  • Corporate Centre
  • Mumbai
  • Maharashtra
  • 400021
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500112BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 1995
SBINNSEI (National Stock Exchange of India)YesEquity SharesININRMar 1995
SBKF.FOTCPK (Pink Sheets LLC)GDR-EACH REPR 10 EQT SHS INR1(REG S)USUSDOct 1996
SBIDLSE (London Stock Exchange)GDR-EACH REPR 10 EQT SHS INR1(REG S)GBUSDOct 1996
SIDDB (Deutsche Boerse AG)GDR-EACH REPR 10 EQT SHS INR1(REG S)DEEUROct 1996

Biography

State Bank of India provides various banking products and services to individuals, commercial enterprises, corporates, public bodies, and institutional customers in India and internationally. The company operates through Treasury, Corporate/Wholesale Banking, Retail Banking, Insurance Business, and Other Banking Business segments. It offers personal banking services, including current accounts, savings accounts, term deposits, and recurring deposits; home, auto, education, gold, and personal loans, as well as loans against property and securities; and wealth management, mobile and Internet banking, demat, ATM, foreign inward remittance, safe deposit locker, public provident fund, money transfer, pension policy, and mobile wallet services, as well as cards and inflation indexed national savings securities cumulative bonds. The company also provides corporate banking services comprising corporate accounts, working capital and project finance, term loans, deferred payment guarantees, corporate loans, structured finance, dealer and channel financing, equipment leasing, loan syndication, construction equipment loans, financing Indian firms overseas subsidiaries or JVs, and cash management, as well as export and cash and letters of credit products. In addition, it offers NRI services, including accounts and deposits, remittances, investments, and loans; agricultural banking and micro credit to agriculturists and farmers; supply chain finance, and deposits and transaction banking services for SME customers; and international banking services. Further, the company provides treasury, broking, bill payment, and MICR services; and credit cards, life and non-life insurance, mutual funds, merchant banking, trustee business, factoring, security trading, pension fund management, and custodial services, as well as primary dealership services in the money market. It operates 22,010 branches and 58,415 ATMs. The company was founded in 1806 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 12:47
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.