SBI turns 70: How the bluechip Nifty stock skyrocketed over 3,400% in 25 years
As
SBI
celebrates its 70th anniversary on July 1, 2025, it marks seven decades since its establishment on July 1, 1955. Over the years, SBI has transformed from a government-controlled bank into India's largest and most trusted financial institution, playing a critical role in shaping the country's economic landscape.
A historic milestone in SBI's journey was the 1993 Initial Public Offering (IPO), which issued 12.4 crore equity shares — the largest public issue at that time. This landmark IPO added over 2 million shareholders, expanding the bank's reach and influence across India's growing economy.
Consistent Financial Growth
SBI's financial results reflect its robust business fundamentals. For the fiscal year ending March 2025, the bank reported a net profit of Rs 70,900 crore, up 16% from Rs 61,076 crore in the previous year. Looking back, the bank's net profit has grown approximately 16-fold since March 2006, when it stood at Rs 4,406 crore—a testament to its steady and sustained growth over the years-- having recorded a loss only once in FY18. (Data Source: ACE Equity)
Brokerage Recommendation
According to Nirmal Bang Equity Research, SBI's profit after tax (PAT) is expected to grow at a CAGR of 9.2% between FY25 and FY27E, driven by an 11.5% CAGR in loan growth, stable cost ratios, and credit costs around 50 basis points. This is projected to result in a return on assets (RoA) of 1.1% and return on equity (RoE) of 15.8% by FY27E.
The brokerage has valued SBI at 1.35 times its March 2027 estimated adjusted book value (ABV), along with a subsidiary value per share of ₹252.3, leading to a target price (TP) of ₹1,013, slightly up from ₹1,010 earlier. Nirmal Bang remains positive on SBI's long-term prospects, citing its leadership in corporate and retail lending—enabling selective quality credit—and its strong liquidity position, which should help maintain stable margins and excellent asset quality. The firm maintains a BUY rating on SBI.
Dividend and Corporate Actions
While SBI has not issued any bonus shares since January 1, 2000, it has maintained a consistent track record of dividend payments. The bank declared final dividends consecutively in May 2021, 2022, 2023, 2024, and most recently in May 2025, rewarding shareholders with regular returns.
A Workforce Powerhouse
SBI is one of the largest employers globally, with a workforce of 236,226 employees as of March 31, 2025. Approximately 27% of these employees are women, reflecting the bank's commitment to diversity and inclusion.
Unmatched Scale and Reach
As India's largest banking and financial services organization, SBI boasts an asset base exceeding Rs 61 trillion. It serves more than 50 crore customers through an extensive network of over 22,500 branches and 63,580 ATMs nationwide, underscoring its unparalleled presence and accessibility.
A Legacy of Evolution
SBI's origins trace back over 200 years to the founding of the Bank of Calcutta in 1806. Through a series of mergers and acquisitions involving more than twenty banks, including the historic Imperial Bank of India (formed by merging the presidency banks of Calcutta, Bombay, and Madras), the institution evolved into today's SBI. In 1955, the Government of India took control of the Imperial Bank, with the Reserve Bank of India acquiring a 60% stake, officially renaming it the
State Bank of India
.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
18 minutes ago
- Economic Times
Microfinance portfolio contracts further to Rs 3.59 lakh cr
Synopsis India's microfinance market experienced a contraction, with the gross loan portfolio declining to Rs 3.59 lakh crore by June 2025. Lenders are prioritizing responsible lending and addressing overleveraging, leading to a decrease in borrowers with multiple lender associations. While early-stage delinquencies improved, later-stage stress remains a concern, indicating a shift towards quality-focused lending. Agencies Representative image Kolkata: The size of India's microfinance market contracted further to Rs 3.59 lakh crore at the end of June, down 5.8% quarter-on-quarter and 17% year-on-year as lenders remained circumspect over growing lending portfolio. The active loan accounts fell to 13.2 crore from 15.93 crore, with the live customer base declining to 8 crore from 8.66 between June 2024 and June 2025. The data were compiled and shared by credit bureau Credit High Mark. The sectoral gross loan portfolio started falling from the first quarter of FY25 after it reached a record high of Rs 4.43 lakh crore at the end of March 2024. It fell to Rs 4.32 lakh crore at the end of June 2024. The moderation aligns with the Reserve Bank of India's push for responsible lending, alongside guardrails from self-regulatory organisations to curb overleveraging, it said. Over the last few quarters, the issue of overlending has also been addressed. Borrowers with four or more active lender associations fell sharply to 10% in June 2025, from 19.2% a year earlier. Over the last 12 months, about 60% of all loans were extended to existing customers with proven repayment histories. Loans above Rs 1 lakh increased in portfolio share to 8.3% as of June 2025 from 4.6% a year back, with 80% of it going to borrowers with a vintage of more than 24 months. The credit bureau said that the portfolio performance has shown green shoots with early- and mid-stage delinquency levels (PAR 31–90) improved from 3.1% in December 2024 and 2.7% in March 2025 to 2.4% in June 2025, signalling strengthening repayment discipline. However, stress in later-stage buckets (PAR 180+ including write-offs) continued to rise, reaching 12.4% in June 2025 from 5.2% in June 2024, underscoring ongoing challenges. The performance highlighted a shift towards quality-focused lending, said CRIF High Mark chairman Sachin Seth. "Lenders prioritised established borrowers, reduced overleveraging, and adjusted ticket sizes in line with risk considerations. The data also highlights early improvements in portfolio quality, with mid-stage delinquencies showing some improvement over the past two quarters,' he said.
Economic Times
18 minutes ago
- Economic Times
Has ICICI Bank taken a U-turn on Rs 50,000 monthly average balance? Here's what it's website shows
ET Online (Representative image) ICICI Bank has lowered its minimum balance requirement for savings account to Rs 15,000 from the earlier Rs 50,000 as announced. ICICI Bank has lowered its minimum balance requirement for savings account to Rs 15,000 for new savings accounts opened from August 1, 2025. ICICI Bank said: "We had introduced new requirements for the Monthly Average Balance (MAB) for new Savings Accounts opened from August 1, 2025. Following valuable feedback from our customers, we have revised these requirements to better reflect their expectations and preferences." According to the ICICI Bank website, the monthly minimum average balance (MAB) for urban locations is now Rs 15,000. Prior to this change it was Rs 50,000. For semi-urban locations the MAB is now revised to Rs 7,500. Previously, the MAB stood at Rs 25,000 for semi urban areas. Also read: Rs 4.58 crore stolen from ICICI bank customers: Broke FDs, created overdraft and personal loan; how relationship manager executed fraud Available in All cities Eligibility Resident Indian below 60 years Minimum monthly averagebalance (MAB)* (MAB is thesimple average of day-endbalances for a calendarmonth) Metro and Urban locations - Rs 15,000Semi-urban locations - Rs 7,500Rural locations- Rs 2,500Pensioners (Below 60 Years) and Students of 1200 selectinstitutes – Nil MAB This SOC is applicable to Savings Account, Account for Pensioners (Below 60Years) and Minors• Programme: Select Banking, Wealth Management andPrivate Banking• Savings Account integrated with Demat & TradingAccount (3-in-1 Account) Source: ICICI Bank website ( Please note: This Schedule of Charges (SOC) and MAB requirements are not applicable to Salary Accounts, Senior Citizens / Pensioners (Above 60 years), BSBDA/PMJDY, and Accounts for people with special needs. They are also not applicable to Savings Accounts opened before July 31, 2025. We have sent our queries to ICICI bank and are waiting for their response. Also read: ICICI Bank branch manager duped depositors of crores for years to meet targets. How is Minimum monthly average balance (MAB) calculated? MAB is the simple average of day-end balances for a calendar month. MAB is calculated by dividing the closing day balances in your account every single day, and dividing them by 30, or 31, whatever the length of the ongoing month has been. In the case of ICICI Bank, if the individual failed to maintain this MAB, they would be penalised 6% of the shortfall, or Rs 500, whichever is lower. Following this, in case the MAB in your account came down to Rs 9500, you'll be required to pay penalty of 6% on the shortfall of Rs 500, i.e. Rs these rules were not applicable to existing ICICI customers i.e. those who held an account with the bank before August 1, 2025, the rules significantly impacted those opening an account with the bank post this date. While calculating MAB, it is important to remember that you are not required to maintain the MAB in your account at all times. This means that in case the MAB stipulated by your bank is Rs 10000, it does not mean that you are required to have Rs 10,000 in your account at all times. It simply means that the average of your daily closing balances should come down to 10,000. N.R. Narayana Murthy Founder, Infosys Watch Now Harsh Mariwala Chairman & Founder, Marico Watch Now Adar Poonawalla CEO, Serum Institute of India Watch Now Ronnie Screwvala Chairperson & Co-founder, upGrad Watch Now Puneet Dalmia Managing Director, Dalmia Bharat group Watch Now Martin Schwenk Former President & CEO, Mercedes-Benz, Thailand Watch Now Nadir Godrej Managing Director, of Godrej Industries Watch Now Manu Jain Former- Global Vice President, Xiaomi Watch Now Nithin Kamath Founder, CEO, Zerodha Watch Now Anil Agarwal Executive Chairman, Vedanta Resources Watch Now Dr. Prathap C. Reddy Founder Chairman, Apollo Hospitals Watch Now Vikram Kirloskar Former Vice Chairman, Toyota Kirloskar Motor Watch Now Kiran Mazumdar Shaw Executive Chairperson, Biocon Limited Watch Now Shashi Kiran Shetty Chairman of Allcargo Logistics, ECU Worldwide and Gati Ltd Watch Now Samir K Modi Managing Director, Modi Enterprises Watch Now R Gopalakrishnan Former Director Tata Sons, Former Vice Chairman, HUL Watch Now Sanjiv Mehta Former Chairman / CEO, Hindustan Unilever Watch Now Dr Ajai Chowdhry Co-Founder, HCL, Chairman EPIC Foundation, Author, Just Aspire Watch Now Shiv Khera Author, Business Consultant, Motivational Speaker Watch Now Nakul Anand Executive Director, ITC Limited Watch Now RS Sodhi Former MD, Amul & President, Indian Dairy Association Watch Now Anil Rai Gupta Managing Director & Chairman, Havells Watch Now Zia Mody Co-Founder & Managing Partner, AZB & Partners Watch Now Arundhati Bhattacharya Chairperson & CEO, Salesforce India Watch Now
&w=3840&q=100)
Business Standard
18 minutes ago
- Business Standard
Jubilant Foodworks Q1 results: PAT rises to 64% on strong delivery growth
Jubilant FoodWorks saw its net profit surge 64.4 per cent during the April-June quarter (Q1) of FY26 at Rs 91.8 crore. In the first quarter of the financial year, the company saw its profit before interest, depreciation and tax (PBIDT) go up 44.60 per cent to ₹459.7 crore. Sales Revenues of the company were up 17 per cent to ₹2,260.9 crore. According to an investor presentation, Domino's India revenue was up by 17.7 per cent year-on-year (Y-o-Y), driven by strong order growth of 17.3 per cent across all tiers and its like-for-like (LFL) rise of 11.6 per cent. This was on account of strong delivery LFL growth of 20.1 per cent. It also said that its mature stores average daily sales came in at ₹85,396 for Domino's India stores. The company added that delivery channel revenue was up by 24.6 per cent and dine-in channel revenue rose 2.5 per cent, mainly driven by lunch-hour meals. Shyam S. Bhartia, chairman, and Hari S. Bhartia, co-chairman, Jubilant FoodWorks, said in its results release, 'We are pleased with the strong start to the year, marked by healthy top-line growth and disciplined profitability. This performance sets a solid foundation for what we believe will be a high-impact year. Our unwavering commitment to putting the customer first combined with sustained investments in technology, innovation, and operational excellence — continue to power our competitive edge and promote long-term value creation.' Sameer Khetarpal, chief executive officer (CEO) and managing director (MD), said in the results release that Q1 has been a stellar start, setting the tone for a dynamic year ahead. 'We've accelerated menu innovation, significantly expanded the share of our own digital assets and made decisive strides towards achieving 20-minute delivery. In parallel, we continue to scale Popeyes with the ambition of making it India's most-loved chicken brand. Our focus remains firmly on margin expansion, while maintaining strong cash flows from our Turkey business,' he added.
