SBI Share Price – Analysis & History

Introduction to State Bank of India

 

State Bank of India is a public sector banking and financial services institution with a history spanning more than 200 years in India. The cornerstone of SBI’s operation has always been serving the interests of the average person. The Bank uses technology to offer and manage its wide range of unique goods and services in a specialised, client-focused manner. Through its various offices and outlets, joint ventures, subsidiaries, and associate firms, SBI, which has its corporate headquarters in Mumbai, offers a wide range of goods and services to individuals, small businesses, major corporations, governmental organisations, and institutional clients. It has always been at the forefront of embracing change while maintaining a focus on its core values of sustainability, service, and transparency.

Through this blog we can know about the current SBI Share price and their 52weeks high and low.

 

 

History of SBI

 

The Bank of Bengal, subsequently known as the Bank of Calcutta, was founded on June 2, 1806; this is where the origins of the State Bank of India may be traced. The Bank of Bengal and the Bank of Bombay, both of which were established on April 15, 1840, were the other two Presidency banks (incorporated on 1 July 1843). Royal charters led to the formation of all three Presidency banks as joint stock companies. Prior to 1861, when the Paper Currency Act gave the Indian government control of the privilege, these three banks had the only authority to print money. On January 27, 1921, the Presidency banks merged, and the newly formed banking organisation adopted the name Imperial Bank of India.

 

Even without government support, the Imperial Bank of India remained a joint-stock business. The Reserve Bank of India, the country’s central bank, purchased a controlling interest in the Imperial Bank of India in accordance with the stipulations of the State Bank of India Act of 1955. The Imperial Bank of India changed its name to the State Bank of India on July 1st, 1955. Since the Reserve Bank of India regulates the nation’s banking industry, the Government of India purchased the RBI’s holding in SBI in 2008 to avoid any potential conflicts of interest.

 

Government officials enacted the State Bank of India (Subsidiary Banks) Act in 1959. Eight banks that had previously belonged to princely states became subsidiaries of SBI as a result. This occurred during the First Five Year Plan, which gave the development of rural India top priority. To increase its rural outreach, the government incorporated these institutions into the State Bank of India system. State Bank of Jaipur (est. 1943) and State Bank of Bikaner were combined by SBI in 1963. (est.1944). In rescue efforts, SBI has bought regional banks. First was the 1911-founded Bank of Bihar, which SBI purchased in 1969 along with its 28 branches. The following year, SBI purchased the 24 branch National Bank of Lahore (est. 1942).

 

Krishnaram Baldeo Bank, which had been founded in Gwalior State in 1916 with the support of Maharaja Madho Rao Scindia, was bought by SBI five years later, in 1975. The Dukan Pichadi, a little moneylender owned by the Maharaja, had served as the bank. Jall N. Broacha, a Parsi, served as the new bank’s first manager. The 120-branch Bank of Cochin in Kerala was purchased by SBI in 1985. SBI was the buyer since the State Bank of Travancore, an associate, already had a wide-ranging presence in Kerala.

 

SBI’s business has continued to grow by double digits in FY2022, with the economy gradually improving.

 

Financial Performance in 2022

 

SBI’s total deposits increased by 10.06% in FY2022, surpassing the 40 lakh crore mark, with domestic deposits increasing by 9.80% to reach 39.20 lakh crore. The CASA deposits increased by 7.78% to $17.75 lakh crore, with saving bank deposits consistently growing by 10.45%. In spite of the low-interest rate environment, your bank’s CASA ratio as of March FY2022 was 45.28%. SBI created 98.75 lakh new savings bank accounts during the course of the year, with the YONO web or app accounting for 63% of those openings.

 

SBI’s advances increased by 11% to ‘28.18 lakh crore in FY2022, as opposed to 4.8% rise in FY2021. Foreign office advances increased by 15.42% while domestic advances increased by 10.27%. Retail personal loans, which currently make up 41.6% of domestic advances, experienced a strong growth of 15.11 percent, driving the domestic loan expansion. Agri and SME loans increased by 6.57% and 9.52%, respectively, during the year to total 2.28 lakh crore and 3.06 lakh crore. Home loans and unsecured personal loans, which increased by 11.49% and 28.50%, respectively, during FY2022, helped the retail personal loans portfolio surpass the $10 trillion milestone.

 

96% of the investments in Your Bank’s investment portfolio, totalling 14.93 lakh crore in FY2022, rose by 9.6%. 60.77% of the domestic investment portfolio falls under the HTM category, and the remaining portion falls under the AFS category. The yield on investment has decreased from 6.32% in FY2021 to 6.07%, in keeping with the interest rate forecast.

 

Your Bank’s performance during FY2022, when the economy recovered from the effects of COVID-19 during the second half, showed a wise recovery. To reach $31,676 crore in FY2022, the standalone net profit increased by 55% from the previous year. Additionally, your bank has seen improvements in provision coverage, NIM, and asset quality. The bank’s net interest income increased by a respectable 9.03% over the previous year to $1,20,708 crore. The lending book has expanded, and slippages have been controlled, which has increased interest income. Additionally, credit costs have dramatically decreased by 57 bps to 0.55% in FY2022.

 

Your bank’s operating profit for FY2022 was ‘75,292 crore, an increase of 5.22% over the prior year. Additionally, the cost to income ratio slightly decreased from 53.60% in FY2021 to 53.31% in FY2022. Return on Assets improved from 0.48% in FY2021 to 0.67% in FY2022 by 19 basis points. Return on Equity increased significantly from 9.94% in FY2021 to 13.92% in FY2022, an increase of 398 basis points.

 

Asset Quality

 

In FY2022, controlling stressed assets remained a top priority, and every segment saw overall improvement. Your Bank was successful in keeping the slippage ratio within 1% in FY2022 because it had adjusted its strategy for managing stressed assets in accordance with the environment. Gross non-performing assets (NPA) at your bank decreased by ’14, 366 crore to ‘1,12,023 crore during FY2022. To reach 21.437 crores during the year, recoveries and upgrades climbed by 21.58%. As a result, the Bank’s gross NPA ratio decreased from 4.98% in March 2021 by 101 basis points. As of March 2022, the Bank’s net NPA decreased to 1.02%. Additionally, the Bank’s sbi share price provisioning coverage ratio (PCR) increased from 70.88% in 2017 to 75.04% as of March 2022. As of March 2022, the PCR, including AUCA, was 90.20%.

 

SBI Capital

 

The Bank’s capital ratios increased during the course of the previous fiscal year as a result of enhanced planning, internal accruals, and effective risk management of the banking book. At the end of March 2022, the Capital Adequacy Ratio (CAR) was 13.83%, up 9 basis points from March 2021. Additionally, the Tier II capital base increased from 2.30% in March 2021 to 2.41% in March 2022.

 

New and Strategic Initiatives from SBI

 

SBI continues implementing strategic initiatives throughout FY2022, working toward the bank’s long-term goals. Among the crucial initiatives are:

 

• SBI introduced “Samarthya,” an engagement initiative for all staff members 35 years of age or younger. The programme was made available through a special “Smart Classroom.” Both officers and clerical workers participate in the programme, which encourages the exchange of ideas and opinions. According to the plans, approximately 67000 people will receive training, and 72% of them were already taken care of in FY2022.

 

• Pre-approved Two-Wheeler Loan (SBI Easyride) and Pre-approved Business Loan (PABL) for PoS customers of its subsidiary SBI PSPL are two new end-to-end digital loan journeys that were introduced (SBI Payment Services Pvt Ltd.). In FY2022, loans of $21,898 crore were disbursed digitally through analytics-based products.

 

• SBI has launched a mass knowledge upgrading programme, “Project Utkarsh,” to improve the level of expertise of the frontline personnel and improve the customer experience. It has also launched the “Customer Care Index” to classify branches based on the calibre of customer service.

 

• Image-based processing has made it possible to open new accounts for the majority of customer types (individuals and non-individuals) promptly and effectively.

 

• Customers can now register for SMS notifications in their favourite language thanks to a facility for 13 different languages. To reduce SMS delivery delays, a number of steps have been implemented, including multi-streaming SMS outflow from CBS to Delivery Platform, upgrading infrastructure to manage a higher volume of SMS, and changing SMS creation and transmission processes in CBS to handle higher quantities.

 

• In order to make it easier for retirees to submit their life certificates through video calling, the functionality of the video life certificate was implemented in November 2021.

 

• In April 2021, a new loan collection application was released, allowing users to record follow-up calls with account holders who had fallen behind on payments. 2.55 crore calls were placed using this application in the current year.

 

• To facilitate new female employees’ smooth integration into the organisation, a mentoring programme was introduced during the year. SBI is actively onboarding consumers into the CCIL (Clearing Corporation of India Ltd.) FX-Retail platform, which offers customers transparent and aggressive pricing. Customers can also access the FX-All and e-Forex trading platforms through Your Bank.

 

Subsidiaries of State Bank of India

 

SBI offers a wide variety of financial services and products to its clients through its subsidiaries. SBI Capital Markets Limited reported a PAT of 339.70 crores on a stand-alone basis for FY2022 as opposed to 273.25 crores for FY2021. In comparison to the prior year, it reported a PAT of 620 crores on a consolidated basis. The broking subsidiary of the SBI Group, SBICAP Securities Limited, reported a net profit of 233.01 crores for the fiscal year that ended in FY2022 as opposed to 207.12 crores in FY2021. Through 137 branches, SBI General Insurance Company Limited has increased its footprint throughout India. The business currently has 8.7 crore customers. With a market share of 4.15%, it saw a growth of 11% in FY2022. It is ranked 12th overall in the industry and 7th among private insurers.

 

In terms of individual new business premium, individual rated premium, total rated premium, and total new business premium among private life insurance companies in FY2022, SBI Life Insurance Company Limited has maintained its leadership position. Compared to the industry growth of 12.9%, the company’s Total New Business Premium (NBP) increased by 23.4%. In comparison to PAT of $1,456 crore in FY2021, the company had PAT of $1,506 crore in FY2022.

 

SBI Cards & Payments Services Limited produced PAT of $1,616 billion in FY2022, an increase of 64% year over year compared to FY2021. SBI Funds Management Limited, one of the AMCs with the fastest rate of growth in the nation, expanded by 28.3% in FY2022 compared to the 19.5% industry average. With approximately 107 lakh live investor folios, including 31.50 lakh new folios added in FY2022, it has one of the largest investor bases. In contrast to the previous year, it reported PAT of ‘1070.65 crore for FY2022. SBI Global Factors Limited, which offers factoring services for domestic and international trade, reported a revenue of $4,773 billion for the fiscal year (2022), up from $4,352 billion in the prior year.

 

One of the seven Pension Fund Managers (PFMs) chosen to oversee Pension Funds in the Private Sector is SBI Pension Funds Private Limited. Assets Under Management (AUM) for the company as of March 31, 2022, were $2,82,476 crores (a y-o-y increase of 26.89%). With a market share of 38.35% among PFMs, the company is in the lead.

 

Recognition & Awards

 

SBI  has received recognition for its work in a number of banking-related sectors and has won numerous accolades this year. Asian Banker Magazine, Singapore’s Transaction Finance Awards 2021 honoured Your Bank as the “Best Cash Management and Transaction Bank in India.” Additionally, Global Finance Magazine has named Your Bank “Best Trade Finance Provider (India)-2022” for the ninth consecutive year. Your Bank took home the Gold Award for “Excellence in Creating a Culture of Continuous Learning and Upskilling” at the prestigious ET Human Capital Awards. The prestigious Kirti Puraskar has been given to your bank by the Indian government in recognition of the best Rajbhasha implementation among public sector banks.

 

Operating And Net Profits

 

From ‘20,410.47 crore in FY2021, the net profit climbed by 55.19% to ‘31,675.98 crore in FY2022. When you take into account the unusual item of $1,539.73 crore from the stake sale from SBI Life in FY2021, your bank’s operating profit for FY2022 improved by 5.22% to ‘75,292.37 crore from ‘71,554.15 crore in FY2021.

 

• Gain from Net Interest

 

From ‘1,10,710.00 crore in FY2021, net interest income increased by 9.03% to ‘1,20,707.59 crore in FY2022. The total amount of interest income increased by 3.89%, from ‘2,65,150.63 crore in FY2021 to ‘2,75,457.29 crore in FY2022. From ‘1,54,440.63 crore in FY2021 to ‘1,54,749.70 crore in FY2022, total interest costs increased. The amount spent on interest on deposits for FY2022 decreased by 0.83% from the prior year.

 

• Other Revenue

 

In comparison to FY2021, other income (excluding extraordinary items) declined by 3.32% to reach 40,563.91 crore in FY2022.

 

• Operational Costs

 

Operating costs (excluding extraordinary items) for the Bank rose from 82,652.22 crore in FY2021 to 85,979.13 crore in FY2022, a 4.03% rise.

 

• Contingencies and Provisions

 

Between FY2021 and FY2022, the total provision and contingency fell by 29.22%, from 51,143.68 to 36,198.00 crore. The two biggest provisions made in FY2022 were Investment Depreciation of ‘3,440.10 crore and Provision of ‘14,086.85 crore for Non-Performing Assets (as opposed to 27,244.35 crore in FY2021). As of the end of March 2022, the Bank’s provisioning to gross non-performing assets (including AUCA) ratio was 90.20% (up from 87.75%). PCR as of March 22nd, excluding AUCA, is 75.04% (70.88% as of March 21).

 

• Reserves and Surplus

 

An amount of `9,502.79 crore (as against `6,123.14 crore in FY2021) was transferred to Statutory Reserves. An amount of `538.16 crore (as against `1,465.12 crore in FY2021) was transferred to Capital Reserves. An amount of `4,647.87 crore in FY2022 (as against `1,928.20 crore in FY2021) was transferred to Investment Fluctuation Reserve.

 

• Dividend 

 

SBI Stocks has declared a dividend of `7.10 per share @ 710% for the year ended March 31, 2022.

 

FAQs

 

• What is SBI share price and what are the returns for SBI Shares?

 

SBI share price is INR 569.40 as of 21 September 2022. SBI has provided a return of approximately 25.44% in the past 1 year as on 21 September 2022.

 

• What are the 52-week highs and lows of  SBI Share price ?

 

As on 21 September 2022 the 52 Weeks high and low of SBI Share price is listed below:

• • 52-wk high Rs 578.65
  • 52-wk low Rs 425.00

 

• What are the key metrics to analyze SBI Share Price?

 

Key metrics to analyze SBI Share Price or any other share price are: 52-week high, a 52-week low, 1-year return, 5-year return, etc.

 

• • PE Ratio of SBI is 14.39
  • Earning per share of SBI is 39.64
  • Price/Sales ratio of SBI is 1.52
  • Price to Book ratio of SBI Share price is 1.60

 

• Who are the peers of State bank of India Shares?

 

Peers of State Bank of India include HDFC, Kotak Mahindra, Nippon Life, SBI Funds Management.

 

• What is the market cap of SBI Share and stocks?

 

The market cap of SBI Share and Stocks is INR 5.1 Lakh Crore as on 21 September 2022

 

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