State Bank of India Upgraded for Strong Financial Performance and Asset Quality

State Bank of India has recently undergone an evaluation revision, reflecting its strong financial performance and market position within the public banking sector. The bank has demonstrated notable growth in key metrics, including a five-year net profit growth of 46.67% and a net interest income growth of 9.79%. Additionally, the bank maintains a robust capital adequacy ratio of 11.79%, indicating a solid financial foundation.
The bank's asset quality is also commendable, with a gross non-performing asset (NPA) ratio of 1.82%, significantly lower than the average of its peers at 3.16%. This is complemented by a coverage ratio averaging 74.35%, showcasing effective risk management practices.

In terms of operational efficiency, State Bank of India has a cost-to-income ratio averaging 53.62% and a net interest margin of 3.00%. These figures position the bank favorably against its competitors, such as Bank of Baroda and Union Bank, which also exhibit strong performance metrics.

Overall, the evaluation adjustment highlights State Bank of India's competitive edge in the banking industry, particularly in asset quality and profitability, setting it apart from its peers.