Enforcing Legacies: How SBI Reeled In 23,950% Returns

Published by Trinkerr Academy on

If you had invested ₹1 lakh in SBI in September 2002, you would have ₹2.6 crores today! This multibagger has given its investors returns of ₹2,39,50,080 and dividends of ₹21,88,800 with 240x growth in 20 years. Here’s a quick peek at the company.

🏦 Stock Name: State Bank of India

💵 About The Company
A Fortune 500 company, the State Bank of India is an Indian multinational, public sector banking and financial services statutory body headquartered in Mumbai. With a 200-year-old legacy, SBI is without question the largest and oldest bank in India with:

💰 22,000 branches and 62,000 ATMs
💰 71,000 business correspondent outlets
💰 A strong customer base of 45 crore customers
💰 A global footprint with a network of 233 branches/offices in 32 countries
💰 The overseas business accounts for 3% of total deposits and 13% of total advances

💵 Subsidiaries
The bank owns various subsidiaries that are engaged in related business activities. Some of them include:

🔸SBI Capital Markets Ltd (100% stake) – SBICAP is a leading investment banker.

🔸SBI DHFI Ltd (72% stake): A primary dealer that supports the book-building process and provides depth and liquidity to secondary markets in G-Sec.

🔸SBI Cards and Payment Services Ltd (69% stake): A non-banking financial company that offers an extensive credit card portfolio to individual cardholders and corporate clients.

🔸SBI Life Insurance Co. Ltd (57.6% stake): One of the leading life insurance companies in India.

🔸SBI Funds Management Pvt Ltd (63% stake): An asset management company.

🔸SBI General Insurance Company Ltd (70% stake): A general insurance company and the first non-life insurance company in India to cross ₹6,000 crores in a decade of operations.

💵 Leadership
SBI has always been the banker of choice to the government of India and is the market leader in government business. It had a turnover of ₹52,50,000 lakh crores and commissions of ₹3,700 crores from government business in FY20 and 67% of all transactions were initiated through digital channels in 2020, which is up from 58% in the previous year.

💵 Stock Value
SBI split the stock once on November 20th, 2014 in the ratio of 10:1 (4608 x 10). The effective number of shares went from 4,608 to 46,080.

On October 4, 2002, the company’s shares were trading at ₹21.70, while they were priced at ₹519.75 as of October 03, 2022.


Leave a Reply

Avatar placeholder

Your email address will not be published.