State Bank of India (SBI) is India’s largest public sector bank and a financial system cornerstone. As the country’s top lender, it plays a pivotal role in credit flow, financial inclusion, and economic development. With a dominant market share in deposits and advances, a robust capital adequacy ratio (CAR), and consistent profitability, SBI remains a core holding for long-term investors. This article provides a clear, fact-based analysis of SBI’s financial health, business outlook, and strategic positioning to establish realistic share price targets from 2026 through 2030.
State Bank of India: Company Overview
- Business Model: Full-service commercial banking offering retail, corporate, and international banking services, along with treasury operations and digital financial solutions.
- Geography: Operates across India with over 22,000 branches and a growing international presence in 32 countries.
- Key Developments: SBI has significantly improved its asset quality, with Gross NPA down to 2.51% and Net NPA at just 0.54% as of Q3 FY2026. It maintains a strong CASA ratio of 38.72% and a healthy CAR of 14.25%, well above regulatory requirements.
State Bank of India: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹595 |
| Market Capitalization | ₹9,47,615 Crore |
| 52-Week High/Low | ₹750 / ₹530 |
| P/E (TTM) | 12.66 |
| P/B (TTM) | 1.93 |
| ROE (FY2025) | 18.57% |
| ROCE (FY2025) | 13.49% |
| CASA Ratio | 38.72% |
| Capital Adequacy Ratio (CAR) | 14.25% |
| Net Interest Income (FY2025) | ₹1,66,965 Crore |
| Cost-to-Income Ratio | 51.64% |
| Dividend Yield | 1.57% |
State Bank of India Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹650 – ₹750 |
| 2027 | ₹720 – ₹840 |
| 2028 | ₹800 – ₹950 |
| 2029 | ₹880 – ₹1,050 |
| 2030 | ₹970 – ₹1,150 |
Note: These targets are derived from a synthesis of credible analyst discussions and projections found in the public domain, adjusted for a neutral, educational perspective.
State Bank of India Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹650 | ₹750 |
- The bank reported strong FY2025 results with 16.08% profit growth and a best-in-class ROE of 18.57% among large PSU banks.
- Its valuation remains reasonable with a P/E of 12.66 and P/B of 1.93, offering a margin of safety for long-term investors.
- Continued improvement in asset quality and stable net interest margins (NIMs) support near-term earnings stability.
State Bank of India Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹720 | ₹840 |
- Growth will be driven by steady loan book expansion, particularly in the retail and MSME segments, and sustained low credit costs.
- As a government-owned entity, it benefits from policy support and a strong implicit sovereign guarantee.
- Investor sentiment should remain positive due to its leadership position and consistent dividend payouts.
State Bank of India Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹800 | ₹950 |
- By this stage, the bank’s digital transformation and focus on fee-based income should lead to improved operational efficiency.
- Its massive scale and nationwide reach provide a durable competitive advantage against private peers.
- Market valuation could see modest support if it sustains its high ROE and further reduces its cost-to-income ratio.
State Bank of India Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹880 | ₹1,050 |
- Long-term investors will be watching for SBI’s ability to maintain its credit discipline in a potentially volatile economic environment.
- Its role as a key financier of India’s infrastructure and consumption story ensures its continued relevance.
- Sustained high dividends and capital appreciation would make it a compelling total-return investment.
State Bank of India Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹970 | ₹1,150 |
- Sentiment will depend on SBI’s success in balancing growth with asset quality in a maturing banking sector.
- If it can maintain its current ROE of over 18% while deleveraging its balance sheet, it could command a premium over its historical valuation multiples.
- Its position as India’s financial backbone makes it a strategic, long-term holding for any portfolio.
State Bank of India: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters (Government of India) | 55.50% |
| Foreign Institutions (FII/FPI) | 9.56% |
| Domestic Institutions (DII) | 27.79% |
| Public (Retail & Others) | 7.13% |
The Government of India holds a controlling 55.5% stake, providing immense stability and an implicit sovereign guarantee. There is no pledging of promoter shares, ensuring strong governance.
State Bank of India: Strengths vs Risks
- Strengths:
- Market Leadership: India’s largest bank with unmatched scale in deposits, advances, and branch network.
- Strong Fundamentals: Best-in-class ROE among PSU banks, robust capital buffers (CAR of 14.25%), and improving asset quality.
- Consistent Dividends: Offers a reliable dividend yield of 1.57%, with a healthy payout ratio.
- Sovereign Backing: Ownership by the Government of India ensures policy support and depositor confidence.
- Risks:
- Regulatory Dependence: Subject to government policies on lending, interest rates, and social obligations.
- Macroeconomic Sensitivity: Performance is closely tied to India’s GDP growth and credit cycle.
- Competition: Faces intense competition from agile private sector banks and fintech disruptors.
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Low to Moderate (large-cap PSU with stable earnings) |
| Time Horizon | Long-term (5+ years) – quality income and growth story |
| Volatility | Low to Moderate – less volatile than private banks but can be affected by sector news |
| Dividend/Income | Yes – offers a steady dividend yield of 1.57%. |
| Ideal Investor | Conservative to moderate-risk investors seeking a stable, government-backed stock with a reliable dividend income stream and exposure to India’s long-term banking growth. |
SBI is best suited for investors who prioritize capital preservation and regular income over high growth.
FAQs
What is the target price of SBI?
Based on our analysis of its fundamentals and sector outlook, we estimate a 2026 range of roughly ₹650 – ₹750. This “model-based” target reflects projected earnings growth and valuations—it is not guaranteed.
Why is SBI share falling?
Short-term price movements can be influenced by market-wide corrections, profit-booking after rallies, or concerns about macroeconomic conditions. However, SBI’s long-term fundamentals remain strong.
Is SBI 100% government-owned?
No, SBI is not 100% government-owned. The Government of India holds a 55.5% stake, making it the majority owner, but the remaining shares are held by institutions and the public.
Is SBI share overvalued?
With a P/E of 12.66 and P/B of 1.93—both below its historical averages and justified by its 18.57% ROE—SBI does not appear overvalued. It trades at a discount to many private sector peers.
What will be the price of SBI in 2026?
Our 2026 target range is ₹650 – ₹750. This assumes continued earnings growth, stable asset quality, and a supportive interest rate environment.
Final Verdict
State Bank of India stands as a pillar of India’s financial system—a large, stable, and increasingly efficient banking franchise. Its combination of market leadership, strong capital buffers, improving asset quality, and consistent profitability makes it a compelling choice for long-term, income-focused portfolios. While it may not offer the explosive growth of private banks, its risk-adjusted returns and sovereign backing provide unmatched peace of mind. Our 2026–2030 price targets (₹650–₹1,150) reflect a path of steady, compounding value driven by dividends and gradual earnings growth, not speculative hype.
Sources
- Screener.in – SBI Consolidated Financials (FY2025)
- Finology Ticker – SBIN Company Profile & Ratios
- Groww – State Bank of India Fundamental Data
- SBI Annual Report FY2025 & Investor Presentations
