SBIN

State Bank of India

HARAM — SCREEN DOES NOT PASSstock

Is SBIN Halal?

Government bank of India — conventional interest banking.

What You Should Know

SBI is India's largest bank. Its FY2025-26 annual report reports INR 7,623,012 crore of assets and INR 173,120 crore of net interest income; the bank-style quantitative screen shows funding/assets 87.98% and advances-plus-cash/assets 69.05%. Conventional banking with riba is not permissible.

⚠️ Concerns

  • Core interest-based banking
  • Government savings bonds and treasury products can involve riba
  • FY2026 net interest income is approximately 31.12% of total income

Current quantitative Sharia screen

Based on Annual report figures for the period ended 2026-03-31; calculated 2026-07-14.

INR · crores
Interest-bearing debt / assets
87.98%Above limit
Below 33.333% under FTSE Yasaar

6,706,896 / 7,623,012

Cash + interest-bearing securities / assets
28.67%Within limit
Below 33.333% under FTSE Yasaar

2,185,814 / 7,623,012

Receivables + cash / assets
69.03%Above limit
Below 50% under FTSE Yasaar

5,262,455 / 7,623,012

Non-compliant income / revenue (upper bound)
31.12%Above limit
No more than 5% under FTSE Yasaar

173,120 / 556,241

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Interest-bearing funding is 87.98% of assets, liquidity is 28.67%, advances plus cash are 69.05% and net interest income is 31.12%; conventional banking independently fails the activity screen.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Funding and advances plus cash exceed the examined total-assets limits; conventional banking also independently fails.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Funding, liquidity and net interest income exceed the examined limits; this is a calculation against SAC ratios, not an official classification of an Indian-listed security.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

Historical market-cap ratios are not stored; a different denominator cannot cure the failed conventional-banking business activity.

Business-activity disclosure

State Bank of India is a conventional commercial bank whose core operations include interest-bearing deposits, lending, mortgages, cards, treasury and government-backed financial products. The FY2025-26 report discloses INR 173,120 crore of net interest income, confirming the riba-based business model.

Limitation: The annual report does not classify every fee, card, trading, advisory or subsidiary contract by Sharia status. That limitation does not change the result because conventional lending and deposit-taking are core operations.

Purification

Purification is not calculated because SBI fails at the core conventional-banking activity level. Net interest income is evidence of failure, not a donation amount that makes continued ownership compliant.

Inputs, assumptions and primary sources
  • Amounts are INR crores from State Bank of India's FY2025-26 standalone annual report.
  • Interest-bearing funding uses deposits of INR 5,975,642 crore plus borrowings of INR 731,254 crore; this is a bank-specific funding proxy rather than a non-financial-company debt definition.
  • Cash uses cash and balances with RBI of INR 268,445 crore plus balances with banks and money at call of INR 116,115 crore. Investments of INR 1,801,254 crore are treated as identifiable securities.
  • Advances of INR 4,877,895 crore are used as the conservative receivables/financing-assets numerator for a bank.
  • FY2026 net interest income was INR 173,120 crore against total income of INR 556,241 crore. NII is evidence of conventional activity, not a purification prescription.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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