Meanwhile, S&P Global Ratings has revised upward assessment of the stand-alone credit profiles (SACPs) of SBI by one notch.

“We revised upward our assessment of SBI's SACP to 'bbb' from 'bbb-' to reflect the bank's lower credit risks and improving earnings. The bank's risk-adjusted capital ratio should therefore stay above 5% over the next 12-24 months. We forecast SBI's return on assets will stay at 0.9%-1.0% over next two years, supported by contained credit costs amid a benign credit cycle in India,” S&P stated.

S&P Global expects the bank to maintain its market leadership in India's banking sector over the next two years. SBI's funding and liquidity will stay strong, supported by high customer confidence.

In the American credit rating agency's view, the bank's asset quality should remain better than the Indian sector average and comparable to that of similar rated international peers. SBI's capitalization is likely to stay weaker than for Indian private sector banks.

State Bank of India (SBI) is an Indian multinational, public sector banking and financial services statutory body. As of 31 March 2023, the Government of India held 57.49% stake in the bank.

The largest PSU bank reported 83.18% surge in standalone net profit to Rs 16,695 crore on a 29.41% increase in total income to Rs 1,06,912.46 crore in Q4 FY23 over Q4 FY22.

The scrip advanced 0.76% to currently trade at Rs 570.25 on the BSE.