State Bank of India (BSE: 500112, NSE: SBIN) has emerged as a key player in the Indian banking and financial services sector. For investors and traders tracking this space, the key questions are: Is SBI a good buy? and what are its share price targets for 2026–2030?
In this article, we break down SBI’s business model, profitability, key risks, and market position. We also provide data-driven share price targets from 2026 to 2030, supported by technical trend analysis using weekly and monthly charts to assess momentum, support zones, and long-term price structure.
Table of Contents
- About State Bank of India (SBI)
- How SBI Makes Money – Business & Revenue Model
- SBI Risks & SWOT Analysis
- Is SBI Stock a Good Buy?
- Why SBI’s Share Price May Lag
- SBI Share Price Target 2026
- SBI Share Price Target 2027
- SBI Share Price Target 2028
- SBI Share Price Target 2029
- SBI Share Price Target 2030
- Should You Buy State Bank of India Stock?
- State Bank of India Technical Analysis
- State Bank of India – Annual Earnings
- Key Financial & Valuation Metrics of SBI
- SBI vs Peers – Valuation & Performance Comparison
- Final Verdict: Is SBI a Good Long-Term Investment?
- FAQs on State Bank of India (SBI)
1. SBI Business Overview: What the Company Does and Why It Matters
State Bank of India (SBI) is a public sector banking and financial services company operating in the Indian and global banking space. Founded in 1806 and headquartered in Mumbai, the company focuses on providing a wide range of banking, financial, and insurance solutions.
Over time, SBI has expanded its offerings and built a large customer base, positioning itself as a leading and trusted player in the Indian banking sector.
Key offerings include:
- Retail banking services for individuals and households
- Corporate and SME banking solutions
- Treasury and investment products
- Insurance and mutual fund products through subsidiaries
- Digital banking platforms and payment solutions
Official updates and platform details are available on SBI’s website .
2. How SBI Makes Money: Revenue Streams Explained
SBI follows a diversified universal banking model, generating revenue primarily through interest income on loans and advances, supported by fee-based and other non-interest income streams.
Main monetisation drivers:
- Interest Income – Earned from lending to retail, corporate, SME, and agricultural clients across India and overseas.
- Fee and Commission Income – Generated from services like ATM usage, remittances, account management, and distribution of third-party products.
- Treasury Operations – Income from investments in government securities, bonds, and trading activities.
- Subsidiary Businesses – Earnings from insurance, mutual funds, credit cards, and investment banking through SBI’s group companies.
Investor takeaway: SBI’s revenue model is broad-based, balancing traditional lending with growing streams from digital banking and financial services, which helps support stability and scalability.
3. State Bank of India Risks & SWOT Analysis
Strengths
- Largest bank in India with over 22% deposit and 19% advance market share, ensuring strong brand and customer trust.
- Diversified business segments including retail, corporate, treasury, insurance, and mutual funds.
- Consistent profit growth with 36.3% CAGR in EPS over the last 5 years.
- Strong domestic and international presence with 22,740 branches and 241 overseas offices.
- Improved asset quality with GNPA at 2.07% and NNPA at 0.53% in 9M FY25.
- Leadership in digital banking, with 92% of transactions via alternate channels and a large UPI market share.
- Healthy return ratios: ROE at 17.2% and OPM at 46.4%.
Weaknesses
- Low interest coverage ratio, indicating higher sensitivity to interest rate changes.
- High debt to equity ratio of 11.1, typical for banks but still a risk in stressed environments.
- Promoter holding has decreased by 1.92% in the last quarter.
- Contingent liabilities remain significant at Rs. 27,42,584 Cr.
- Free cash flow has been negative over the last 3 years.
- Net Interest Margin (NIM) has declined from 3.39% in FY23 to 3.19% in 9M FY25.
Opportunities
- Rising demand for retail loans and digital banking services in India.
- Potential to further grow in insurance, mutual funds, and credit cards through subsidiaries.
- Government focus on financial inclusion and digital payments can expand customer base.
- Scope to increase international business, which currently accounts for 15% of advances.
- Cross-selling opportunities via digital platforms like YONO.
Threats
- Rising competition from private sector banks and fintechs in both urban and rural markets.
- Macroeconomic slowdowns or policy changes may impact credit growth and asset quality.
- Exposure to large corporate and SME loans increases vulnerability to sectoral stress.
- Regulatory changes or higher provisioning requirements could affect profitability.
- Global economic uncertainties may impact overseas operations and forex earnings.
4. Is State Bank of India Stock a Good Buy?
Bull Case
- Strong fundamentals, leadership position, and diversified revenue streams support long-term stability.
- Consistent improvement in asset quality and profitability metrics.
- Well-placed to benefit from India’s economic growth, rising credit demand, and digital adoption.
- Attractive valuation compared to private peers, with a P/E of 11.4 and P/B of 1.57.
- Regular dividend payout offers income for long-term investors.
Bear Case
- High exposure to government and corporate lending may lead to asset quality concerns in downturns.
- Declining NIM and high contingent liabilities could pressure future earnings.
- Public sector ownership may limit operational flexibility compared to private banks.
- Stock may be less suitable for investors seeking high growth or low volatility.
5. Why State Bank of India’s Share Price May Lag
Even with long-term potential, the stock may underperform in certain periods due to:
- Slowdown in credit growth or higher slippages impacting earnings momentum.
- Pressure on margins from rising funding costs or competitive pricing.
- Large contingent liabilities or unexpected provisioning requirements.
- Market preference shifting towards private sector banks or new-age financial players.
- Regulatory changes affecting public sector banks more than private peers.
- Global or domestic macroeconomic shocks impacting the banking sector.
6. State Bank of India Share Price Target 2026: ₹1,080 – ₹1,260
By 2026, State Bank of India (SBI) could see its share price reflect steady growth in advances, stable asset quality, and continued leadership in the Indian banking sector. The bank’s focus on retail and corporate lending, along with digital adoption, is expected to support moderate earnings growth. However, sector-wide margin pressures and regulatory changes may limit upside.
| Year | Bull Case (₹) | Base Case (₹) | Bear Case (₹) |
|---|---|---|---|
| 2026 | 1,260 | 1,170 | 1,080 |
Key Drivers:
- Consistent loan book growth in both retail and corporate segments
- Stable net interest margins despite industry competition
- Improvement in asset quality with lower GNPA and NNPA ratios
- Continued expansion of digital banking and transaction volumes
Investment View: SBI’s scale and diversified business model may help it deliver steady returns in 2026, though investors should monitor sector-wide risks and interest rate trends.
7. State Bank of India Share Price Target 2027: ₹1,200 – ₹1,410
In 2027, SBI’s share price could benefit from further digital transformation and increased contribution from subsidiaries such as SBI Life, SBI Card, and SBI Mutual Fund. While earnings visibility remains strong, any slowdown in credit demand or rise in slippages could impact performance.
| Year | Bull Case (₹) | Base Case (₹) | Bear Case (₹) |
|---|---|---|---|
| 2027 | 1,410 | 1,300 | 1,200 |
Key Drivers:
- Higher fee income from insurance, cards, and mutual fund subsidiaries
- Increased CASA ratio supporting cost of funds
- Wider adoption of digital channels and YONO platform
- Improved operating leverage as branch network matures
Investment View: SBI’s diversified revenue streams and digital push could support moderate upside, but investors should remain cautious about macroeconomic headwinds and sector competition.
8. State Bank of India Share Price Target 2028: ₹1,320 – ₹1,570
By 2028, SBI’s share price may reflect the benefits of sustained credit growth, improved cost efficiencies, and stable asset quality. The bank’s international presence and leadership in financial inclusion could add incremental value, though global uncertainties and regulatory changes may pose challenges.
| Year | Bull Case (₹) | Base Case (₹) | Bear Case (₹) |
|---|---|---|---|
| 2028 | 1,570 | 1,430 | 1,320 |
Key Drivers:
- Operational efficiencies from digital and branch rationalisation
- Growth in international business and cross-border services
- Stable credit costs and prudent risk management
- Expansion in financial inclusion and rural banking initiatives
Investment View: SBI’s long-term fundamentals remain robust, but investors should track global economic trends and regulatory developments that could influence sector valuations.
9. State Bank of India Share Price Target 2029: ₹1,390 – ₹1,740
By 2029, State Bank of India’s share price is projected to reflect the bank’s continued leadership in India’s banking sector, steady digital adoption, and stable asset quality. The price range factors in different scenarios, from robust execution to potential macroeconomic headwinds.
| Year | Bull Case (₹) | Base Case (₹) | Bear Case (₹) |
|---|---|---|---|
| 2029 | 1,740 | 1,540 | 1,390 |
Key Drivers:
- Expansion of international business and higher contribution to advances and deposits
- Increased cross-selling of insurance and mutual fund products
- Continued improvement in asset quality with stable or declining NPAs
- Growth in financial inclusion initiatives across rural and semi-urban areas
Investment View: SBI’s outlook remains positive for long-term investors, supported by its diversified business model and digital transformation.
10. State Bank of India Share Price Target 2030: ₹1,540 – ₹1,950
In 2030, SBI’s share price target range reflects the bank’s ability to sustain growth in a competitive environment, leveraging its scale and technology investments. The bank’s strong domestic franchise, coupled with prudent risk management, is expected to support earnings.
| Year | Bull Case (₹) | Base Case (₹) | Bear Case (₹) |
|---|---|---|---|
| 2030 | 1,950 | 1,730 | 1,540 |
Key Drivers:
- Scaling of digital lending and payment platforms
- Improved cost efficiencies through automation
- Greater contribution from subsidiaries
- Effective management of capital adequacy and contingent liabilities
Investment View: By 2030, SBI is expected to maintain its leadership. The stock may suit investors with a long-term horizon seeking stability and moderate growth.
11. Should You Buy State Bank of India Stock?
| Year | Bull Case (₹) | Base Case (₹) | Bear Case (₹) |
|---|---|---|---|
| 2026 | 1,250 | 1,110 | 1,020 |
| 2027 | 1,370 | 1,230 | 1,110 |
| 2028 | 1,540 | 1,370 | 1,250 |
| 2029 | 1,740 | 1,540 | 1,390 |
| 2030 | 1,950 | 1,730 | 1,540 |
Valuation Snapshot
- Current P/E ratio at 11.4, above the industry average of 7.99, reflecting premium for scale and stability.
- Price to Book Value (P/B) at 1.57, indicating moderate valuation relative to peers.
- Return on Equity (ROE) at 17.2%, showing efficient capital utilisation.
- Dividend yield of 1.64%, providing some income support for investors.
- PEG ratio of 0.38, suggesting reasonable growth at current valuation.
Investor Verdict
- Short-term: Volatility may persist due to macroeconomic factors and regulatory changes. Traders should watch technical levels and sector news.
- Long-term: SBI remains a core holding for investors seeking exposure to India’s banking growth story, backed by digital initiatives and a strong franchise. Conservative growth expectations are advisable.
12. Technical Analysis: Weekly & Monthly Chart View
The technical structure below is based on a combined reading of the weekly and monthly price charts, helping investors understand both medium-term momentum and long-term trend direction.
View the official SBIN price chart on NSE India.
Weekly Chart Outlook (Medium-Term)
- The medium-term trend remains firmly upward, with price trading above both the 10-week and 21-week moving averages.
- Support is visible in the 880–900 zone, while resistance may emerge near the 980–1000 range.
- Momentum is strong, with the RSI hovering near the overbought zone, indicating robust buying but also some caution for fresh entries.
Monthly Chart Outlook (Long-Term)
- The long-term trend is positive, with higher highs and higher lows visible over several months.
- Structure remains bullish, as price sustains above key monthly moving averages and shows steady accumulation.
- From a risk perspective, the RSI is also near the overbought region, suggesting the stock is extended but not showing reversal signals yet.
Technical takeaway: Both medium-term and long-term charts indicate a strong uptrend, but momentum indicators are signalling overbought conditions. Investors may consider monitoring for consolidation or pullbacks near support zones, while keeping an eye on any changes in trend structure.
13. State Bank of India – Annual Earnings
The table below shows key consolidated financials of State Bank of India for the last five fiscal years.
Source: Company filings, BSE/NSE disclosures & investor presentations.
| Metric | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | TTM |
|---|---|---|---|---|---|---|
| Total Income (₹ Cr) | 3,06,910 | 3,51,325 | 4,06,973 | 4,78,570 | 5,05,420 | 5,05,420 |
| Net Profit (₹ Cr) | 20,410 | 31,676 | 41,327 | 56,558 | 78,596 | 83,845 |
| Earnings Per Share (₹) | 22.8 | 35.4 | 46.5 | 63.7 | 89.7 | 89.7 |
| Net Interest Margin (%) | 2.90 | 3.05 | 3.19 | 3.39 | 3.19 | 3.19 |
| Gross NPA (%) | 4.98 | 3.97 | 3.14 | 2.78 | 2.07 | 2.07 |
- Total income has grown steadily over the last five years, reflecting consistent expansion in the bank’s business volumes.
- Net profit has shown strong growth, rising from ₹20,410 Cr in FY21 to ₹78,596 Cr in FY25, supported by improved asset quality and higher interest income.
- Earnings per share (EPS) has increased significantly, indicating better profitability for shareholders.
- Net Interest Margin (NIM) has remained stable, though there was a slight contraction in recent quarters due to competitive lending rates and higher funding costs.
- Gross NPA ratio has declined consistently, suggesting improved asset quality and effective risk management.
Financial Snapshot: State Bank of India has demonstrated steady growth in income and profitability over the last five years. Asset quality has improved, with a reduction in gross NPAs. Margins have remained broadly stable, and the bank continues to maintain a strong presence in both retail and corporate banking segments.
14. State Bank of India – Key Valuation Metrics
Key valuation and profitability ratios showing State Bank of India’s financial strength, pricing, and risk profile.
| Metric | Value |
|---|---|
| Price to Earnings (P/E) | 11.4 |
| Price to Book Value (P/B) | 1.57 |
| Price to Sales (P/S) | 1.77 |
| PEG Ratio | 0.38 |
| Return on Equity (ROE) | 17.2% |
| Return on Capital Employed (ROCE) | 6.47% |
| Dividend Yield | 1.64% |
| Debt to Equity Ratio | 11.1 |
| Operating Profit Margin (OPM) | 46.4% |
| EPS Growth (3 Years) | 29.9% |
| EPS Growth (5 Years) | 36.3% |
15. SBI vs Peers – Valuation & Performance Comparison
Focused comparison of State Bank of India with its closest industry peers based on valuation and profitability metrics.
| Company | P/E | Market Cap (₹ Cr) | Qtr Profit (₹ Cr) | Qtr Sales (₹ Cr) | ROCE % |
|---|---|---|---|---|---|
| State Bank of India | 11.4 | 8,94,401 | 29,519 | 1,26,355 | 6.47 |
| Bank of Baroda | 8.2 | 1,17,800 | 5,028 | 28,700 | 5.9 |
| Punjab National Bank | 10.1 | 1,14,200 | 3,620 | 25,100 | 5.1 |
| Canara Bank | 7.7 | 1,08,500 | 3,980 | 24,800 | 5.3 |
| Union Bank of India | 7.5 | 91,200 | 3,540 | 22,900 | 5.0 |
16. Final Verdict: Is SBI a Good Long-Term Investment?
SBI remains a core holding for investors seeking stability and steady growth in the Indian banking sector.
The bank’s leadership, digital push, and diversified operations support its long-term prospects, but investors should be mindful of valuation, regulatory, and cyclical risks. For traders, price movements may be influenced by macroeconomic events and sector news. Overall, SBI is best approached with a balanced perspective, focusing on gradual accumulation and regular review of sector trends.
Best for: Long-term investors seeking stability, diversified exposure, and moderate growth; traders with a focus on large-cap banking stocks; risk-aware investors monitoring sector and regulatory changes.
17. FAQs on State Bank of India
Q1. What is the SBI share price target for 2026?
There is no official SBI share price target for 2026. The price will depend on business growth, market conditions, and overall banking sector performance.
Q2. What is the SBI share price target for 2030?
SBI share price in 2030 will be influenced by factors like loan book growth, asset quality, and economic trends. No guaranteed targets are available.
Q3. Is SBI a good stock for long-term investment?
SBI is India’s largest public sector bank with steady profit growth and a strong market presence. Investors should review risks and fundamentals before making decisions.
Q4. Why is SBI share price falling?
SBI share price may fall due to weak quarterly results, sector-wide corrections, global cues, or regulatory changes affecting the banking industry.
Q5. Why is SBI share price rising?
SBI share price can rise on strong earnings, healthy loan growth, improved asset quality, or positive market sentiment towards public sector banks.
Q6. Can I invest in SBI stock?
SBI shares are available for investment on NSE and BSE. Investors should assess their risk profile and do their own research before investing.
Q7. What are the key risks of investing in SBI?
Key risks include high debt-to-equity, low interest coverage, exposure to economic cycles, and regulatory changes impacting the banking sector.
Q8. Is SBI suitable for short-term trading?
SBI has good liquidity and trading volumes. Short-term traders should monitor technical indicators and market trends before taking positions.
Q9. What factors can impact SBI share price in the future?
SBI share price may be impacted by interest rate changes, asset quality, loan growth, government policies, and overall economic conditions.
Q10. How does SBI compare with its peers?
SBI leads in market share, branch network, and digital initiatives among public sector banks. Its profitability and asset quality are improving, but valuation metrics are higher than the industry average.
Disclaimer
This article is for general informational and educational purposes only and should not be considered financial or investment advice. Stock markets involve risks, and actual results may differ from projections. Always conduct your own research or consult a licensed financial professional before making investment decisions. ChartMyWealth.com is not responsible for any financial losses arising from the use of this content.
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