Affirmation of credit rating by S&P Global Ratings
Awaiting price reaction for this filing.
S&P Global Ratings has affirmed State Bank of India's credit rating at BBB-/Positive/A-3, with the standalone credit profile (SACP) confirmed at bbb. SBI remains India's largest bank with about $844 billion in assets and a 22-24% market share in domestic loans and deposits. The Positive outlook mirrors the outlook on India's sovereign rating, meaning SBI could be upgraded if S&P raises India's sovereign rating over the next two years. S&P expects SBI to maintain strong asset quality, with the NPL ratio staying at 2.5%-3.0% over the next 12-18 months, while capitalization remains weaker than private peers with a risk-adjusted capital ratio of 6.0%-6.3%. Funding and liquidity continue to be strengths, supported by high customer confidence and 57% government ownership.
This is a rating affirmation with no change to the rating or outlook, keeping SBI's credit standing stable. The maintained Positive outlook signals potential for a future upgrade if India's sovereign rating improves, but the rating remains capped by the sovereign ceiling. For shareholders, this reinforces confidence in SBI's credit profile and operational stability.