Credit Analysis & Research (CARE) assigned 'AAA' ratings to State Bank of India's Tier II Bonds (Basel III compliant) of Rs 20 billion.

The ratings factor in the majority ownership and support from Government of India (GOI) and SBI's systemic importance and dominant position in the Indian banking sector, given its large asset size and extensive branch network.

The ratings also take into account the bank's strong CASA base, comfortable liquidity profile, comfortable capitalization level, weak asset quality and pressure on profitability.

Continued ownership and support from GOI, profitability and asset quality are the key rating sensitivities.

Shares of the company declined Rs 15.05, or 0.92%, to settle at Rs 1,626.90. The total volume of shares traded was 171,530 at the BSE (Tuesday).