COMPANY PROFILE

“ Banker To Every Indian”

VISION
Be the Bank of choice for transforming India

Mission
Committed to providing Simple, Responsive and Innovative Financial solutions

Core Values
 Service
 Transparency
 Ethics
 Politeness
 Sustainability

Profile
The State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services statutory body. It is a government corporation statutory body headquartered in Mumbai,
Maharashtra. SBI is ranked as 236th in the Fortune Global 500 list of the world's biggest corporations
of 2019. It is the largest bank in India with a 23% market share in assets, besides a share of one-fourth
of the total loan and deposits market.
The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank of India, making
it the oldest commercial bank in the Indian subcontinent. The Bank of Madras merged into the other
two "presidency banks" in British India, the Bank of Calcutta and the Bank of Bombay, to form
the Imperial Bank of India, which in turn became the State Bank of India in 1955. The Government of
India took control of the Imperial Bank of India in 1955, with Reserve Bank of India (India's central
bank) taking a 60% stake, renaming it the State Bank of India.

SBI is entering into many new businesses with strategic tie ups – Pension Funds, General Insurance,
Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory
Services, organized items and so on The bouquet of services provided by SBI includes Personal
Banking, International, Banking, Agriculture / Rural and Corporate Banking, SME, Government
Business and Domestic Treasury. .

Apart from five of its associate banks (merged with SBI since 1 April 2017), SBI's non-banking
subsidiaries include:

 SBI Capital Markets Ltd

 SBI Cards & Payments Services Pvt Ltd. (SBICPSL
 SBI Life Insurance Company Limited

As of 31 March 2017, the SBI group had 59,291 ATMs. Since November 2017, SBI also offers
an integrated digital banking platform named YONO..
 BRIEF FINANCIALS

S.R.NO. PARTICULARS FIGURES

1 Current Market Price/LTP 345.25 as on 29
November, 2019
2 Category Large Cap Company
3 Market Capitalisation Rs. 311424.32 Crores
4 No. of Shares Outstanding 8,924,611,534
5 52 weeks high 373.80
6 52 weeks low 244.35
7 Volume 7733044
8 P/E 30.53
9 P/B 1.28
10 Dividend/Yield (%) 0.00
11 Offer Price (Qty.) 345.30(488)
12 Face Value 1.00
13 EPS-TTM 11.34
14 BV/share 269.52
15 Consolidated Income for the quarter Rs. 46575.64 Crores
ending Sept.,2019
16 Income from investment Rs. 18399.94 Crores
17 Interest on Balances with RBI Rs. 877.81 Crores
18 Other income Rs.1523.81 crores
19 Operating profit Rs.14714.46 crores
20 Net Profit Rs.3011.73 crores
21 EPS Rs. 3.37
22 Gross NPA Rs. 161,636.05
23 Net NPA Rs. 59,939.22
24 Return On Assets 0.33%
25 Net Profit Margin 0.09%
26 Capital Adequacy Ratio 12.72%
27 Adjusted Cash Flows 714.53 times
 BETA ANALYSIS

BETA(β) measures the volatility or sensitivity of security returns relative to entire market
returns. Beta’ represents the inherent risk profile of a stock and how it responds to different
market conditions. It is measured by dividing the covariance of the return of an asset and that
of the benchmark, with the variance of the return of the benchmark over a certain period.The
beta of the market is usually one and the general rule is that if a stock has a beta of more than
one, it is considered riskier but has the potential to provide better returns in good times

Value of Beta ranges from 0 to ,1 that means when

If β = 1, it means that returns of security are as volatile as market return and;
if β = 0, it indicates no correlation situation between security return and market return
if β less than 0, then negative correlation situation
if β more than 1, then security returns are more volatile than the market returns
and if β greater than 0, but less than 1, then security returns are less volatile than the
markets’
So, here we can see that value of β is 1.568066 which reflects that returns of stocks of State
Bank of India. Are More volatile, than the NIFTY FIFTY Market returns (for the period
commencing from 1st April, 2018 to 31st March, 2019).
In more precise manner, we can say that stocks of SBI Is theoretically 56% More volatile than
the market.
HOW DO WE REACH BETA β
In above scenario, firstly, returns for the stocks of SBIN and NIFTY FIFTY were calculated
with the formula for each week (stock price for the day after – stock price for the present
day)/stock price for the day after.
Secondly, Covariance (between returns of SBI Stocks and returns of NIFTY FIFTY) was
calculated by considering all resulted returns to find out the relationship between both (SBI
Stock & Market) returns, whenever market return changes. 0.000489 is the covariance found.
It is positive, hence showing that there is positive relationship between both returns that means
if market return increases, than stock return of SBI also increases and vice versa.
Next, Variance (for market returns) was to be arrived at, to measure the volatility of market
returns from its average(mean) over the period of one year, 0.000311 is the variance found,
indicating very less volatility of the market returns i.e. all the returns for the year are very much
identical or approximate to one another.
Lastly, by applying formula of Covariance/Variance, we get our Beta as 1.5680 or 156.8 %
volatility between SBI Stock returns and Market Returns.
In general words, we can say that stocks of SBI are moderately high risky to invest in, that
means it would generate huge profits when market is going up and huge losses when market is
going down
it means the SBI stock is expected to increase by more than the market in up markets and
decrease more than the market in down markets.