CRISIL Ratings assigns 'AA+' rating to SBI's Tier-I bonds with 'stable' outlook

The agency has also reaffirmed its 'CRISIL AAA/CRISIL AA+/Stable/CRISIL A1+' ratings on the other debt instruments.

CRISIL stated that the ratings continue to centrally factor in the SBI group's dominant market position in the Indian banking industry, strong resource profile and adequate capitalisation.

The ratings also factor in the continued strong support that the bank is likely to receive from its majority owner, Government of India (GoI), both on an ongoing basis and in the event of distress.

These strengths are partially offset by the average asset quality of the group.

There are upward factors to the current rating of SBI. However, material change in expectation of support from GoI; and significant and continuous increase in delinquencies (GNPAs crossing 10%), leading to decline in profitability could lead to a ratings downgrade.

State Bank of India (SBI) is the oldest and largest bank in India. As on March 31, 2024, GoI owned 56.92% of the bank's equity capital. The SBI group offers a wide range of banking and non-banking products and services to its corporate and retail customers. The bank had 22,542 branches and 63,580 automated teller machines (ATMs) as on March 31, 2024. It has presence across the world. Through its non-banking subsidiaries and joint ventures, it offers a wide range of financial services, such as investment banking, credit cards, life insurance, general insurance, fund management, primary dealership, broking and factoring.

The scrip rose 0.11% to currently trade at Rs 805.50 on the BSE. <