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

CRISIL said 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.

The agency said that the bank's liquidity position is ‘superior' as it has a sizeable retail deposit base. Liquidity coverage ratio (consolidated) stood at 148%as on March 31, 2023. It also has access to systemic sources of funds, including the liquidity adjustment facility from the RBI, the call money market and the refinance limits from apex bodies such as National Housing Bank and National Bank for Agriculture and Rural Development.

CRISIL Ratings believes the SBI group will maintain its dominant position in the financial services sector in India and strong resource profile over the medium term. Furthermore, GoI's ownership will ensure continued need-based support, given the bank's significance to the domestic economy and financial system.

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 rating downgrade.

State Bank of India (SBI) is the oldest and largest bank in India. As on March 31, 2023, 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 22,405 branches and 65,627 automated teller machines (ATMs) as on March 31, 2023. 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.

SBI, on a consolidated basis, reported profit of Rs 55.648 crore in fiscal 2023 as against Rs 35,374 crore in fiscal 2022. Total income (net of interest expenses) was Rs 2,83,398 crore in FY23 as compared with Rs 2,50,779 crore in FY22.

The scrip shed 0.03% to currently trade at Rs 593.60 on the BSE.