If Your Dad Invested ₹10,000 In SBI A Decade Ago, Here's How Much You'd Have Today

State Bank of India has been a cornerstone of the Indian banking sector. The bank is the biggest public lender in the country. The lender has a market cap of ₹5.07 lakh crore and has seen its share price rise tremendously since its listing. So here’s what would have happened if your father had invested ₹10,000 in the bank a decade ago.

The Investment: On 7th August 2013, SBI was trading at ₹171.61. Fast forward to today, the stock is valued at ₹560. This means that an investment of ₹10,000 would have bought approximately 58 shares a decade ago. Today, those 58 shares would be worth approximately ₹32,480.

Earnings: The public lender booked a standalone profit of ₹16,884.3 crore, up 178% from the ₹6,068.1 crore profit it reported in the June quarter of 2022. The lender's net interest income stood at ₹38,904 crore, up 24% from the year-ago period.

However, the company's net interest margin went down 37 basis points on a quarter-over-quarter basis to 3.47%. The gross non-performing assets (NPA) ratio was at 2.76%, down by 115 bps year-over-year, and the net NPA ratio was at 0.71%, down by 29 bps YoY.

Analyst Reactions: The analysts while largely bullish on the stock did express concern about the slump in the lender’s NIM. Here are the latest analyst calls on the stock.

AnalystRatingPrice Target
JP MorganOverweight₹720
HDFC SecuritiesBuy₹750
ICICI SecuritiesBuy₹730
Morgan StanleyEqualweight₹670

Price Action: SBI’s share price was down 0.71% to trade at ₹569.25 in the late hours of trading on Monday.

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Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.

Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story

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Posted In: EducationGeneralState Bank of India