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Economic Times
01-07-2025
- Business
- Economic Times
SBI turns 70: How the bluechip Nifty stock skyrocketed over 3,400% in 25 years
A Legacy Spanning Seven Decades ADVERTISEMENT Consistent Financial Growth Brokerage Recommendation Dividend and Corporate Actions A Workforce Powerhouse ADVERTISEMENT Unmatched Scale and Reach A Legacy of Evolution ADVERTISEMENT 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 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)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 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 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 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 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 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
Time of India
01-07-2025
- Business
- Time of India
SBI turns 70: How the bluechip Nifty stock skyrocketed over 3,400% in 25 years
A Legacy Spanning Seven Decades 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 .
