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The market asks roughly as much of ICICI Bank as of State Bank of India.
At current prices, buyers of ICICI Bank are assuming about 17.0% return on equity against 17.3% in its own record; for State Bank of India it is 14.8% against 16.1%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on excess return.
- Size: the two are worth roughly the same on the stock market.
- Record: On revenue the two have grown at much the same pace: ICICI Bank compounded at about 13% a year (FY2018–FY2026) and State Bank of India at about 12% (FY2019–FY2026).
- What to watch: sustaining return on equity at ICICI Bank; return on equity versus its own history at State Bank of India.
| ICICI Bank | State Bank of India | |
|---|---|---|
| Price | ₹1,584 | ₹1,080 |
| Market cap | ₹11.37L Cr | ₹9.97L Cr |
| P/E | 19.2 | 11.0 |
| P/B | 3.00 | 1.62 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Excess return | Excess return |
01Two businesses
From clean-up to one of the highest-return big banks
ICICI Bank is India's second-largest private bank, lending to households, small businesses and large companies, with one of the strongest digital-banking franchises in the market. Its group includes a life insurer (ICICI Prudential Life), a general insurer (ICICI Lombard) and a stake in the ICICI Prudential asset-management business.
The bank the whole country runs on
State Bank of India is the country's largest bank by deposits, loans, branches and customers, and it is majority-owned by the Government of India. It lends to everyone from farmers and home buyers to the largest corporates, and its group includes SBI Life, SBI Card, the SBI Mutual Fund asset manager and SBI General Insurance.
02The records side by side
On revenue the two have grown at much the same pace: ICICI Bank compounded at about 13% a year (FY2018–FY2026) and State Bank of India at about 12% (FY2019–FY2026). By revenue, State Bank of India is about 2.3 times the size of ICICI Bank. ICICI Bank kept 18.5% of revenue as net profit in FY2026; State Bank of India kept 12.0% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: ICICI Bank · State Bank of India.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Sustaining return on equityThe price leans on ICICI holding returns well above its cost of equity. Each point of return it sustains — or loses — moves the value sharply.
- Retail and unsecured growthFaster-growing retail loans earn more but carry more credit risk when the cycle turns.
- Return on equity versus its own historySBI's value depends on whether recent returns hold through a full credit cycle — something it has not shown before.
- Credit costsBecause the book is so large, even a modest rise in fresh bad loans would show up quickly in profit.
05What could go wrong
- The credit cycleUnsecured personal loans and credit cards have grown quickly across the industry; a downturn there would show up in provisions first.
- Margin pressureRate cuts can compress lending margins faster than deposit costs fall.
- A turn in corporate creditSBI's history shows how fast large-company defaults can erase years of profit.
- Staff and pension costsWage settlements at a public-sector bank are less flexible and can lift costs in step.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is ICICI Bank or State Bank of India better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, ICICI Bank trades at 19.2 times earnings and 3.00 times book value, and State Bank of India at 11.0 times earnings and 1.62 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between ICICI Bank and State Bank of India?
ICICI Bank is India's second-largest private bank, lending to households, small businesses and large companies, with one of the strongest digital-banking franchises in the market. State Bank of India is the country's largest bank by deposits, loans, branches and customers, and it is majority-owned by the Government of India.
Are ICICI Bank and State Bank of India valued the same way?
Yes — both on excess return, so their workings compare like for like.
What does today's price assume for ICICI Bank and State Bank of India?
Worked backwards from the share price, ICICI Bank needs about 17.0% return on equity and State Bank of India about 14.8% return on equity, against 17.3% and 16.1% in their own records.