Cheapest large bank; funding moat
State Bank of India (SBI) provides a wide range of products and services to individuals, commercial enterprises, large corporates, public bodies, and institutional customers through its various branches and outlets, joint ventures, subsidiaries, and associate companies. It has always been in the forefront to embrace changes without losing sight of its values such as Service, Transparency, Ethics, Politeness and Sustainability.
State Bank of India provides banking products and services in India and internationally. The company operates through the Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Business segments. It offers personal banking products and services, including current, savings, salary, and deposit accounts; home, personal, pension, auto, education, and gold loans, as well as loans against insurance property, and securities; debit, business debit, prepaid, and green remit cards; overdrafts; mutual funds, insurance, equity trading, portfolio investment schemes, remittance services; digital lending; and mobile, internet, and digital banking services. The company also provides corporate banking products and services comprising corporate accounts, working capital and project finance, deferred payment guarantees, corporate term 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 trade and service products. In addition, it offers NRI services, including accounts, investments, loans, and remittances; agricultural banking services; and international banking services. Further, it provides life and general insurance; estate planning services; merchant banking and advisory; securities broking; trusteeship service; factoring; payment solution; asset management; portfolio and investment management; credit cards; and custody and fund accounting services. State Bank of India was founded in 1806 and is headquartered in Mumbai, India.
Key people: Mr. Rana Ashutosh Kumar Singh (MD of International Banking, Global Markets & Technology & Director) · Mr. Ravi Ranjan (Managing Director of Risk, Compliance, & SARG & Director) · Mr. Ashwini Kumar Tewari (MD of Corporate Banking (CAG & CCG) and Subsidiaries and Director) · Mr. Rama Mohan Rao Amara (Managing Director of Retail Business & Operations & Director) · Mr. Sunil Ramgopal Agrawal (Chief Financial Officer) · Mr. Sahadevan Radhakrishnan (Deputy MD & COO)
State Bank Of India major competitors are HDFC Bank, ICICI Bank, PNB, Union Bank Of India, Bank Of Baroda, Indian Bank, Canara Bank. Market Cap of State Bank Of India is ₹9,19,923 Crs. While the median market cap of its peers are ₹1,35,458 Crs.
State Bank Of India seems to be financially stable compared to its competitors.The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Yahoo profile 23 Sept 2026 · Tijori 23 Sept 2026
Latest reported mix as compiled by Tijori from company disclosures; percentages of revenue.
As the company reports them. They can differ from the ratio table on the Financials tab, which uses Tijori's own definitions (for example NIM on average total assets rather than on interest-earning assets); the Cross-check panel there lines both up.
India's largest bank: ₹50 lakh crore of loans, ₹60 lakh crore of deposits, 23,000 branches, a 22–23% share of system deposits and a 39% CASA ratio no private bank can match. Since the 2016–19 asset-quality review it has rebuilt from a ₹6,500 crore loss (FY18) to an ₹80,000 crore profit (FY26), with net NPA down from 5.7% at the FY18 peak to 0.4%. Listed subsidiaries — SBI Life, SBI Cards, SBI Funds (AMC), SBI General, SBI Caps — are worth ~₹240 a share today (₹270 on a Sep-2027 basis) after a 20% holding-company discount.
| Bank of Baroda / Canara / PNB | Cheaper on paper (0.9–1.0x book) but with 32–35% CASA, thinner capital, weaker retail franchises and 12–13% ROEs that depend on treasury gains — SBI's premium is the price of the only PSU balance sheet that came through the AQR with a better retail book than most private banks. |
| HDFC Bank | We own both. HDFC Bank's ROA is 1.8% vs SBI's 1.1%, so it deserves its 1.6x to SBI's 1.25x; SBI's advantage is CASA, excess liquidity and subsidiaries. |
| Kotak Mahindra | Kotak's 12% ROE at 2.0x core book versus SBI's 15% at 1.25x — the same ROE arithmetic the house has always used, and it points to SBI. |
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.
Banking — 21.1%: the largest exposure, chosen bank by bank
Banks are the cheapest way to own an economy growing 8–9% in nominal terms, and today they are cheap for a reason that has nothing to do with their economics. Every one of the four cycles that drive bank earnings is turning in their favour: deposits are growing 15.4% (the fastest in a decade) so the funding squeeze that capped growth in FY25–26 is easing; system credit is growing 18.3% and corporate borrowing is migrating from a shrinking bond market (issuance −18%) back onto bank balance sheets; margins troughed in the June 2026 quarter after 125 bp of repo cuts and are now rising as deposits reprice; and asset quality is the best in twenty years (large private-bank net NPAs 0.3–0.5%, SBI 0.38%). Yet the Bank Nifty trades below its own long-run average. The reason is mechanical: foreign investors have sold ₹1.8 lakh crore of Indian equity in FY26 and six of their ten largest holdings are banks. They can only sell what they own. Our own work — a capital-adjusted residual-income model of the four large private banks plus SBI, built from FY17 — says the four large private banks earn 14.5–17.5% on normalised capital against a 12.25–13% cost of equity and will compound book at 12–16% a year. Over ten-year horizons EPS growth and share-price growth converge; the arithmetic is on our side even if the timing of the narrative turn is not. The important sales point is that our alpha in financials has come from selection, not the index: SBI in 2017 when retail delinquencies were better than perceived, ICICI as a top pick from 2018, Axis through its credit-cost trough (up 40–50% for us). Roughly 40% of the bank index is HDFC Bank and Kotak and we deliberately did not hug it at 4–5x book.
Kotak Mahindra Bank is the obvious omission. Our model rates it REDUCE: a 12% ROE bank at 2.0x core book, priced for a 17% ROE it does not earn, with CASA sliding toward 40% and a CEO succession still ahead. The argument the house has used for years — a 16–17% ROE bank cannot compound above that without dilution, so 4–5x book is unsustainable — applies with more force to a 12% one. IndusInd is a governance rebuild we do not need to underwrite; Federal Bank and AU Small Finance are good franchises but neither has IDFC First's deposit engine or its operating-leverage runway at a comparable price. Among public-sector banks, Bank of Baroda and Canara are cheaper on paper but have weaker CASA, thinner capital and none of SBI's subsidiary optionality; SBI's premium (1.25x vs 0.9–1.0x) is the price of a franchise that survived the AQR and emerged with the best retail book in the system.
| Auto Insurance - Market Share | 4.67 % | as of Jul 26 |
| Auto Loans - Market Share | 19.40 % | as of Sep 25 |
| Bank Advances - Market Share | 23.24 % | as of Jun 26 |
| Bank Deposits - Market Share | 22.89 % | as of Jun 26 |
| Debit Card Transactions - Market Share | 33.32 % | as of Jul 26 |
| Education Loans - Market Share | 35 % | as of Mar 20 |
| Equity AUM - Market Share | 13.14 % | as of Jul 26 |
| Gross Direct Premium Income - Market Share | 4.35 % | as of Jul 26 |