State Bank of India

Is State Bank of India safe?

Yes, for an Indian saver, mainly because of who stands behind it. State Bank of India is majority-owned by the Government of India, holds about ₹60 trillion of deposits and is the only bank in the RBI's fourth bucket of systemically important banks. Its CET1 ratioCET1 ratioA bank's highest-quality capital (mainly shares and retained profits) as a share of its risk-weighted assets. Higher means more room to absorb losses.More in the glossary was 12.89% at 30 June 2026, against a minimum of 8.80%, and gross bad loans were 1.47%, the lowest in over two decades.

We score it 68/100, two points below HDFC Bank. SBI has more liquidity and a stronger implicit state backstop, but HDFC Bank holds far more capital and never needed public money. SBI's history is the reason: eight years ago it was making losses and taking government capital.

How much is insured at SBI

Deposits at SBI are insured by the Deposit InsuranceDeposit insuranceA government-backed scheme that repays bank customers up to a set limit if their bank fails, such as the FDIC in the US or the FSCS in the UK.More in the glossary and Credit Guarantee Corporation, a subsidiary of the RBI, up to ₹5 lakh per depositor per bank, interest included. All accounts you hold in the same name and capacity are added together, at any branch. Joint accounts, and accounts held as a partner, director or guardian, get their own ₹5 lakh. If the RBI ever froze a bank under "all-inclusive directions", the DICGC must pay insured depositors within 90 days.

The limit is small next to SBI's typical fixed deposit of a retiree or small business. What protects larger balances is the state. Parliament created SBI by statute in 1955, the government controls it, and the RBI makes it hold an extra 0.8% of risk-weighted assets as CET1CET1 ratioA bank's highest-quality capital (mainly shares and retained profits) as a share of its risk-weighted assets. Higher means more room to absorb losses.More in the glossary because of its size. That is strong in practice, but it is a policy choice, not a legal guarantee. ICBC's depositors in China rely on a similar mix of state ownership and a higher RMB 500,000 limit, which is why ICBC scores higher on deposit protection.

From 10.91% bad loans to 1.47%

Measure	March 2018	June 2026
Gross NPA ratio	10.91%	1.47%
Net NPA ratio	5.73%	0.38%
CET1 ratioCET1 ratioA bank's highest-quality capital (mainly shares and retained profits) as a share of its risk-weighted assets. Higher means more room to absorb losses.More in the glossary	n/a	12.89%
Net profit	₹6,547 crore loss (full year)	₹21,121 crore (quarter)

The 2015–2018 clean-up of Indian bank balance sheets hit SBI hard. When the RBI tightened rules on restructured loans, gross NPAs jumped to 10.91% in March 2018 and SBI lost ₹7,718 crore in that quarter alone. The government added ₹8,800 crore of capital in 2017-18 as part of its recapitalisation of public sector banks. Since then SBI has rebuilt steadily: its CET1 ratio rose from 11.10% to 12.89% in the year to June 2026, helped by profits and a share sale, and S&P raised its rating to BBB in August 2025 after upgrading India itself.

The buffer of about four points over the requirement is solid but not generous; HDFC Bank has about nine. Fast loan growth (18.6% in the year to June 2026) uses capital quickly, so this ratio is worth watching.

Liquidity and deposits

Liquidity is SBI's strongest point. Its liquidity coverage ratioLiquidity coverage ratioA bank's cash and easy-to-sell assets compared with the money that could flow out in a 30-day crisis. It must be at least 100%.More in the glossary was 126.05% in June 2026. Deposits of ₹60.06 trillion comfortably fund ₹50.47 trillion of advances, and current and savings accounts make up 39.24% of domestic deposits.

Penalties and the 2019 data leak

The RBI fined SBI ₹2 crore in February 2024 for breaches of the Banking Regulation Act and the rules on transferring unclaimed deposits to the Depositor Education and Awareness Fund. In May 2025 it added ₹1.73 crore for breaches of lending rules, current account discipline and the rules that limit customers' liability for unauthorised electronic transactions. The last item matters to customers: if money leaves your account through fraud you did not cause, report it within three days, which under RBI rules limits your liability.

In January 2019 TechCrunch reported that an SBI server in Mumbai holding two months of SBI Quick data (account balances, partial account numbers, recent transactions and phone numbers) had no password. SBI first denied any breach, then said a misconfiguration had been fixed. No fraud losses were linked to it. Today almost 99% of SBI transactions run through digital and other alternate channels, and more than 64% of new savings accounts are opened in the YONO app, so the attack surface is large.

What SBI customers should do

1. Keep balances up to ₹5 lakh per person and capacity if you want full DICGC cover; a joint account or a second bank extends it.
2. Report any unauthorised UPI, card or net banking debit to SBI within three days, in writing or through the app, and keep the complaint number.
3. Turn on transaction limits and alerts in YONO, and never share an OTP or install a remote-access app at a caller's request.
4. Know what is not a deposit: SBI Mutual Fund, SBI Life and SBI Card products sold at branches are separate companies and are not DICGC-insured.

How we scored it

Liquidity (76) and deposit protectionDeposit insuranceA government-backed scheme that repays bank customers up to a set limit if their bank fails, such as the FDIC in the US or the FSCS in the UK.More in the glossary (72) are SBI's strongest factors, thanks to India's largest retail deposit base and the state behind it. Stability history (60) is the weakest because of the 2018 losses and government capital, with digital security (62) close behind after the 2019 leak. Capital (68) has improved but sits on a four-point buffer and a BBB rating.