State Bank of India (SBI) has received rating actions on various debt instruments. CARE Ratings assigned a CARE AAA; Stable rating to ₹7,500 crore Tier II Bonds. Ratings on infrastructure bonds and other Tier I & Tier II bonds were reaffirmed at CARE AAA; Stable and CARE AA+; Stable, respectively. Additionally, certain ratings were withdrawn following the maturity of related instruments. The ratings reflect SBI’s strong market position, capitalization, and asset quality.
Rating Actions on Debt Instruments
CARE Ratings has assigned and reaffirmed ratings for State Bank of India’s (SBI) debt instruments. A CARE AAA; Stable rating was assigned to ₹7,500 crore Tier II bonds. Ratings were also reaffirmed for infrastructure and Tier I & II bonds. Certain ratings have been withdrawn following instrument maturities.
Key Rating Details
Here is a breakdown of the rating actions:
Assigned:
- ₹7,500 crore Tier II Bonds: CARE AAA; Stable
Reaffirmed:
- ₹10,000 crore Infrastructure Bonds: CARE AAA; Stable
- ₹10,000 crore Infrastructure Bonds: CARE AAA; Stable
- ₹10,000 crore Tier I Bonds: CARE AA+; Stable
- ₹5,000 crore Tier I Bonds: CARE AA+; Stable
- ₹500 crore Tier II Bonds: CARE AAA; Stable
- ₹200 crore Tier II Bonds: CARE AAA; Stable
- ₹10,000 crore Tier II Bonds: CARE AAA; Stable
- ₹4,000 crore Tier II Bonds: CARE AAA; Stable
- ₹7,500 crore Tier II Bonds: CARE AAA; Stable
Rationale for Ratings
The ratings continue to reflect SBI’s majority ownership by the Government of India (GoI) and its status as a Domestic Systemically Important Bank. The ratings also consider SBI’s strong resource profile, healthy capital profile, and operating profitability.
Withdrawn Ratings
Ratings on specific Basel III Tier I and Tier II bonds were withdrawn in accordance with ICRA’s withdrawal policy, as the bonds were fully redeemed with no outstanding amounts.
Outlook and Sensitivities
The stable outlook reflects the expectation that SBI will maintain a steady growth in advances and deposits, with a healthy profitability profile. The ratings also factor in support from the GoI, which holds a majority stake in the bank. Negative rating triggers include reduction in government support below 51% and deterioration in asset quality.
Source: BSE
