Uncover the Potential of State Bank of India Share Price and Start Your Journey Now

If you are about to open a demat account and want to enter the world of online trading, then you must keep an eye on State Bank of India’s share price. State Bank of India is one of the largest and best performing banks in the country.

Over the years, several retail and institutional investors have bought its stock and earned significant returns. So, what makes State Bank of India (SBI) a key banking stock? Let us take a look at its performance.

Potential Of State Bank Of India As A Stock Is Backed By Its Performance

1. Impeccable Financial Performance

SBI posted an outstanding set of numbers in its results for the quarter ending September 30, 2024. Its return on assets (ROA) stood at 1.17% in the quarter, which is higher than the 1% benchmark in the banking industry. Its net non-performing assets (NPA) ratio was 0.53%, which shows its bad assets were really low. 

Besides, its net profit grew by 27.9% in the September 2024 quarter compared to the September 2023 quarter. This clearly shows that the bank is growing without compromising on its asset quality.

2. Access To Low-Cost Current And Saving Account (Casa) Deposits

CASA deposits have a lower cost of deposits than term deposits. Hence, the higher the ratio of CASA deposits in a bank’s total deposits, the better it is for a bank because it helps a bank control its cost of deposits. State bank of india share price CASA ratio stood at 40.03% at the end of September 2024 quarter, which is much higher than that of other banks.

3. Capitalise On The India Growth Story

SBI is one of the largest banks in India. Its branches are present in almost every nook and corner of the country. Wherever there is an opportunity, the bank is present. Besides, India is a growing economy. The living standards of people are rising at a decent rate. As the economy does well, more people will need finance, which shows that SBI is likely to perform well in the future.

4. Government Backing

As per the Bombay Stock Exchange’s (BSE) website, the Central Government holds a 57.51% stake in SBI. Such government backing is reassuring because it means that the Government can provide capital to the bank when it needs it. Besides, it also makes people trust the bank. As a result, they trust SBI with their money, which helps the bank grow its business through online trading. Moreover, whenever the central government launches a program to expand the banking services network in India, SBI usually takes the lead. Hence, government backing often results in business growth for the bank.

5. Diversified Loan Book

SBI has one of the most diversified loan books in the banking sector. This is because the bank offers a variety of loans including corporate loans and retail loans. Within retail loans, it offers housing loans, auto loans, education loans, credit cards, etc. As the variety of loans offered is huge, the bank does not rely excessively on one kind of loan, which lends stability to its business.

Conclusion

In case, you are keen to invest in banking stocks, you must keep an eye on State Bank of India’s share price. The bank has performed exceedingly well this year. Be it growth in net profit, asset quality, or CASA, its performance is outstanding.

Moreover, SBI has a widespread presence in India. Hence, it is likely to benefit from India’s growth story. 

As the demand for loans and banking services increases due to the growing economy, more people will turn to SBI, which means the bank’s business is likely to grow.

Therefore, you should track State Bank of India’s share price on a regular basis and find opportunities to invest in it.