How To Buy SBI Stock From India

State Bank of India (SBI) is the largest bank in the country by assets and the 9th largest organization in India by market capitalization. The iconic SBI stock is also one of the most preferred banking stocks in India. 

That said, the legacy of SBI stretches well back in time but under a different name. In this blog, we’ll explore the beginnings of SBI, why SBI stock is growing, and how to buy SBI stock from India.

How Was SBI Started?

First came the Bank of Bengal and its subsidiaries in 1806 which joined to form the Imperial Bank of India in 1921. IBI was a joint-stock company but the Government of India did not have a stake in it. 

Things changed later on as The Reserve Bank of India (RBI) acquired a 60% controlling stake in IBI in 1955. That’s when IBI was renamed SBI. A lot has happened since. 

To start with, the Government of India bought back the controlling interest in SBI in 2008 from the RBI to avoid any conflict of interest. Furthermore, SBI stock price has grown by more than 2,000% since 1999.   

The Financials Of SBI Stock

1. Stock Name: State Bank of India (ticker: SBIN)

2. Share Price: ₹462.80*

3. Market Cap: ₹413,789 crores ($55.73 billion)

4. Dividend Yield: 0.86

5. Beta: 1.55

6. 52 Week Low: ₹185.90

7. 52 Week High: ₹471.90

Fun fact: SBI has branches outside of India in countries like Canada, China, Mauritius, South Korea, the UK, the USA, and others. 

SBI Stock Price From 2002 To 2021

Fun fact: SBI has a bigger market cap than MetLife, Twitter, Ford, and other US companies. 

How Are SBI Stock Prices?

SBI stock (ticker: SBIN) has grown from ₹15.09 in 1999 to ₹462.80 in 2021. That’s a growth of over 96% in two decades. Along the way, SBI stock price has been known to experience periods of volatility.

But that’s down to the nature of the banking industry and various events like the pandemic that can sway investor sentiment. That said, SBI stock has several strengths like:

• Stellar revenue: More than 55% growth year on year in standalone profit for Q1 FY2021
• Total assets: SBI is the biggest bank in India by total assets, ahead of HDFC Bank, ICICI Bank, and others  
  

The other reason for the growth of SBI stock price is the solid range of banking and wealth services that it offers along with its domestic and international subsidiaries like:

• SBI Australia
• SBI Canada Bank
• SBI China
• SBI USA
  

However, these reasons are not enough to determine whether you should add SBI stock to your portfolio. There are other, more personal factors that go into deciding whether a stock is a good buy for you.

SBI Stock Split History

SBI stock has seen two stock splits over its lifetime. A stock split simply means that more shares are issued without diluting the valuation/market cap.

For example, a 1:4 stock split means that each investor will get 3 more shares for every 1 share they own but the price will be divided equally among all 4 shares.

Is SBI Stock A Good Buy?

Facts suggest that SBI stock is a potentially strong proposition due to factors like:

• Blue-Chip: SBI is the 9th largest organization in India by market capitalization
• Revenue: SBI is neck a neck when it comes to revenue compared to private banks like HDFC Bank and ICICI Bank
• Subsidiaries: SBI has a global reach and has subsidiaries in Australia, Canada, China, UK, and the USA
  

Furthermore, SBI stock price has outperformed most of its competitors over the long term (5+ years).

However, these factors aren’t enough to determine whether SBI stock is a good buy for you. There are other factors that will play a pivotal role in determining whether SBI is useful for you like:

• Risk profile
• Investment goals
• Affordability
  

It’s best to consult a trained professional like a Cube Wealth Coach who can help you figure out if you should invest in SBI stock to achieve your wealth creation goals. 

Top Ways To Buy SBI Stock From India

You can gain exposure to SBI stock from India in direct and indirect ways that include buying the stock on your own or through mutual funds. 

1. Mutual Funds 

SBI is a blue-chip company that is known to offer consistency and growth. That’s why top mutual funds like the ones on Cube hold SBI stock in their portfolio. 

Mutual funds on the Cube Wealth app are handpicked and curated by Wealth First, Cube’s mutual fund advisor, who has a track record of beating Nifty by 50% over the past decade.

2. On Your Own

Indian investors have the option of buying stocks of companies like SBI through a brokerage account on their own. However, there’s a ton of research involved and financial statements to be read.  

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Conclusion 

Investing in SBI stock can offer exposure to the banking and financial sector in India, and it is an opportunity to participate in the growth and stability of one of the country's largest banks. However, like all investments, it comes with inherent risks, and it's crucial to conduct thorough research, maintain a diversified portfolio, and make informed decisions aligned with your financial objectives and risk tolerance. Staying informed about the banking industry and market developments is essential for successful investing in SBI or any other stock.

FAQs 

1. What is a Demat account, and why do I need one to buy SBI stock?

Ans. A Demat account is a digital account that holds securities in electronic form. You need one to buy and store SBI shares electronically.

2. Can I buy SBI stock with a small amount of capital?

Ans. Yes, you can start with a small investment in SBI stock. Some brokers even offer the option to buy fractional shares.

3. Can I buy SBI stock with a small amount of capital?

Ans. Yes, you can start with a small investment in SBI stock. Some brokers even offer the option to buy fractional shares.

4. Is there a cost associated with purchasing SBI stock in India?

Ans. Yes, brokerage platforms usually impose fees or commissions for facilitating stock transactions. It's essential to carefully examine and comprehend these fees before making your investment.

Note:

Facts & figures are true as of 04-10-2021. All information mentioned is for educational purposes and relies on publicly available information. None of the information shared here is to be construed as investment advice. We strongly recommend you consult a Cube Wealth coach before investing your money in any stock, mutual fund. PMS or alternative asset.

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