State Bank of India (SBI) received updated rating rationales from both India Ratings and Research (Ind-Ra) and CRISIL Ratings as of early March 2026. Ind-Ra affirmed the Long-Term Issuer Rating and assigned ‘IND AAA’/Stable to Additional Tier II Bonds. CRISIL assigned ‘Crisil AAA/Stable’ to new Tier II Bonds and reaffirmed ratings across major debt instruments, citing strong franchise, systemic importance, and expected government support. Both agencies noted SBI’s superior asset quality, despite noting moderate profitability metrics.
Rating Announcements Summary (March 2026)
This communication serves to report the receipt of updated rating rationales for State Bank of India’s (SBI) debt instruments from two major rating agencies. The latest actions are dated 05.03.2026 by India Ratings and Research (Ind-Ra) and March 05, 2026 by CRISIL Ratings.
India Ratings Rationale Highlights
Ind-Ra has reaffirmed the Long-Term Issuer Rating and affirmed existing ratings across instruments. A key action was assigning ‘IND AAA’/Stable to the Additional Tier II Bonds. The ratings are underpinned by SBI’s dominant market share in the Indian banking system, systemic importance, and robust access to capital markets. Key strengths noted include superior asset quality metrics and a pan-India presence. Weaknesses cited include moderate capital ratios, although these are supported by enhanced equity-raising ability. The bank’s domestic CASA ratio remained robust between 39% and 44% over FY23-FY25.
Key Financial Data (Standalone, INR Billion)
- Total Assets (FY25): 66,760.5
- Net Income (FY25): 709.0
- Return on Assets (FY25): 1.10%
CRISIL Ratings Rationale Summary
CRISIL Ratings has assigned ‘Crisil AAA/Stable’ to the Rs 7,500 Crore Tier II Bonds (Under Basel III) and reaffirmed other ratings. The analysis centers on the strong expectation of support from the Government of India (GoI), given its majority shareholding (55.03% as of December 31, 2025). SBI maintains a dominant market position, holding ~22% market share in domestic deposits.
Asset quality has shown improvement, with standalone Gross Non-Performing Assets (GNPAs) improving to 1.57% as of December 31, 2025. The resource profile is strong, with low-cost CASA deposits accounting for approximately 39.1% of total deposits as of December 31, 2025. Profitability is noted as improving but remains moderate; standalone Return on Assets (ROA) reached 1.10% in fiscal 2025.
Key Financial Data (Consolidated, as of December 2025)
- Total Assets: Rs 78,81,070 Crore
- Overall Capital Adequacy Ratio: 14.2%
- Return on Assets: 1.1%
Instrument Complexity and Rating Details
The rationales detail the structure of various instruments. For example, Basel III Tier I bonds are categorized as Highly Complex, while Certificates of Deposit are rated ‘Crisil A1+’ and marked as Simple in complexity. The Tier II Bonds under Basel III carry a Complex designation.
It is noted that CRISIL Ratings has withdrawn ratings on certain older Tier I and Tier II bonds because they were fully redeemed, consistent with their policy.
Source: BSE
