Credit Rating- New

The Listing Department, The Listing Department, BSE Limited, National Stock Exchange of India Limited, Phiroje Jeejeebhoy Towers, Exchange Plaza, 5th Floor, 25th Floor, Dalal Street, Plot No.: C / 1, ‘G’ Block, Mumbai – 400001. BKC, Bandra (East), Mumbai – 400051. BSE SCRIP Code: 500112 NSE SCRIP Code: SBIN CC/S&B/SD/2026-27/312 24.07.2026 Madam / Sir, Reporting under Regulation 30 and 51 of SEBI (LODR) Regulations, 2015 - Rating Rationale In terms of Regulation 30, 51 and other applicable Regulations of SEBI (LODR) Regulations, 2015, we enclose copy of the rating rationale issued on 24.07.2026 by: 1. CRISIL Ratings Limited 2. CARE Ratings Limited Please take the above information on record. (Shima Devi) AGM (Company Secretary) Encl.: A/a Rating Rationale July 24, 2026 | Mumbai State Bank of India 'Crisil AA+/Stable' assigned to Tier I Bonds (Under Basel III) Rating Action Name Of Instrument Rating Outstanding with Regulator of the Outlook instrument Rs.5000 Crore Tier I Bonds (Under Crisil AA+/Stable (Assigned) SEBI Basel III) Fixed Deposits Crisil AAA/Stable (Reaffirmed) RBI Rs.10000 Crore Infrastructure Bonds Crisil AAA/Stable (Reaffirmed) SEBI Rs.30000 Crore Certificate of Deposits Crisil A1+ (Reaffirmed) RBI Tier I Bonds (Under Basel III) Crisil AA+/Stable (Reaffirmed) SEBI Aggregating Rs.45974 Crore Tier II Bonds (Under Basel III) Crisil AAA/Stable (Reaffirmed) SEBI Aggregating Rs.34815.1 Crore Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. 1 crore = 10 million Refer to annexure for Details of Instruments & Bank Facilities Detailed Rationale Crisil Ratings has assigned its ‘Crisil AA+/Stable’ rating to the Rs 5,000 crore Tier I Bonds (under Basel III) of State Bank of India (SBI; part of the SBI group) and has reaffirmed its 'Crisil AAA/Crisil AA+/Stable/Crisil A1+' ratings on the other debt instruments. The ratings continue to centrally factor in the SBI group’s dominant market position in the Indian banking industry, strong resource profile, stable profitability and adequate capitalisation. The ratings are also supported by continued strong support that the bank is likely to receive from its majority owner, Government of India (GoI), both on an ongoing basis and in the event of distress. Analytical Approach Crisil Ratings has combined the business and financial risk profiles of SBI and its subsidiaries, collectively referred to as the SBI group, as the subsidiaries are an integral part of SBI’s growth strategy. The ratings are also supported by the strong support that the bank is expected to receive from GoI, both on an ongoing basis and in the event of distress. Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. Key Rating Drivers - Strengths Dominant market position in the Indian banking industry The SBI is the largest player in the banking sector in India, with domestic market share of ~22% in deposits and ~20% in advances as on March 31, 2026. On consolidated basis, SBI had net advances and deposits of Rs 49,78,013 crore and Rs 60,43,097 crore, respectively, as on March 31, 2026 (Rs 42,50,831 crore and Rs 54,39,898 crore, respectively, as on March 31, 2025). The group's robust brand, pan-India presence and wide reach in rural and semi-urban areas have resulted in diversified advances book and large and stable deposit base. In addition to its strong presence in corporate finance, the bank is a leader in the retail finance segment; it also offers other financial services such as investment banking and life insurance. The SBI group also has wide presence in overseas markets. Alongside robust market position, the asset quality of the bank, although average, has improved over the past few years, driven by lower slippages, higher recoveries and write-offs. SBI's standalone gross non-performing assets (GNPAs) improved to 1.49% as on March 31, 2026 (1.82% as on March 31, 2025), compared with 2.24% and 2.78% as on March 31, 2024, and March 31, 2023. Further, the early warning indicators, SMA 1 and SMA 2 accounts, as a proportion to standard advances (with exposure above Rs 5 crore as per CRILC data), marginally improved to 0.07% as on March 31, 2026 (0.08% as on March 31, 2025). Strong resource profile A large and diversified deposit base lends stability to the group’s resource profile, which is backed by a healthy proportion of low-cost current account and savings account (CASA) deposits. Low-cost CASA deposits have remained above 40% over the past few years and accounted for ~39.5% of total deposits (excluding foreign deposits) as on March 31, 2026. The high proportion of CASA deposits helps the group to maintain its cost of deposits (CoD) at competitive level; CoD was 5.04% (domestic) in Q4FY26. Adequate capitalisation SBI (standalone) had adequate capitalisation, indicated by tier-I and overall capital adequacy ratios (CAR; under Basel III) of 13.3% and 15.4%, respectively, as on March 31, 2026 (12.1% and 14.3%, respectively, as on March 31, 2025). The bank received equity infusion of Rs 5,681 crore and Rs 8,800 crore from GoI in fiscals 2017 and 2018, respectively. Furthermore, it raised equity capital of Rs 25,000 crore through qualified institutional placements (QIPs) in July 2025. It also has the flexibility to raise additional capital through stake sale in its subsidiaries. Capital position benefitted from proceeds of Rs 6,215 crore [pre- tax(consolidated)] in fiscal 2020 through stake sale in SBI Life Insurance Company Ltd (SBI Life) and SBI Cards and Payment Services Ltd. In fiscal 2021, the company earned Rs 1,540 crore through stake sale in SBI Life. However, given its large scale of operations, the SBI group will need to maintain adequate buffers to support growth and meet capital requirement as per Basel III guidelines. Crisil Ratings believes GoI will continue to support SBI's capital requirement, considering its stature as India’s largest PSB. Also, GoI held 55.03% stake in the bank as on March 31, 2026, providing flexibility to the bank to raise capital by diluting GoI's stake. Strong expectation of support from GoI The ratings continue to factor in the strong support expected from GoI, both on an ongoing basis and in the event of distress, given that GoI is the majority shareholder in public sector banks (PSBs) and the guardian of India's financial system. Stability of the banking sector is of prime importance to GoI, considering its criticality to the economy, the strong public perception of sovereign backing for PSBs and the adverse implications of a PSB failure in terms of a political fallout, systemic stability and investor confidence. Crisil Ratings believes the majority ownership creates a moral obligation on GoI to support PSBs, including SBI. GoI through its Indradhanush framework, the recapitalization package and budget allocations has demonstrated its strong backing to PSBs. SBI had received Rs 8,800 crore in fiscal 2018 from GoI. Key Rating Drivers - Weaknesses Improving, yet moderate profitability Profitability was impacted in the past owing to elevated GNPAs, leading to higher credit costs. However, in recent years, with improvement in the asset quality, credit costs have come down from 1.04% of average assets for fiscal year 2021 to 0.25% for fiscal year 2026. Resultantly, SBI’s earnings profile has improved with the bank reporting a standalone profit after tax (PAT) of Rs 80,032 crore (consolidated - Rs 83,299 crore) in fiscal 2026. The standalone return on assets (ROA) has been upwards of 1.0% since fiscal 2024; for fiscal 2026, it was 1.12% (consolidated – 1.07%). Nonetheless, the bank’s ability to sustainably improve its overall earnings profile while containing credit costs would remain a key monitorable. Liquidity Sup [Showing first 8,000 characters — download PDF for full document]