SBI’s Q4 Net Profit Rises 24% to Rs. 20,698 crore, Rs.13.70 Dividend Declared
SBI Q4 net profit rose 24% to Rs 20,698 crore. Along with their successful financial quarter, the company has declared a dividend of Rs 13.70.
India’s largest bank, State Bank of India (SBI) reported a 24% rise in net profit at Rs 20,698 crore for the quarter ended March 31, 2024. As a result of strong progress, SBI posted a net profit. Last year Rs. 20,698 crore against growth opportunities of Rs. 16,695 crore.
Analysts underestimated the profit, as it beat their estimate of Rs 13,400 crore. In response to these impressive earnings, the public lender announced a remarkable dividend of Rs 13.70 per share for the 2024 financial year.
By 2:10 pm on May 9, SBI’s share price was up nearly 3 percent, trading at Rs 834.40 per share.
In the first quarter of this year, SBI saw a significant improvement in its asset quality. The bank’s latest report showed that the bank’s total non-performing assets declined by 0.54 percent over the previous year – from 2.78 to 2.24. Moreover, SBI moderated its net non-performing assets as it declined by 0.01 per cent to 0.57 per cent in the quarter from 0.68 to 0.67 per cent in the previous year.
In the March quarter, SBI’s loans grew at a robust pace, achieving its best growth in eight quarters. Additionally, the bank has hit a notable low for the ratio of gross to net NPAs, the lowest in 36 quarters.
In the reported quarter, SBI experienced a 19 percent growth in interest earned, compared to a year-ago earnings of Rs. 92,951 crore as against Rs. 1.11 lakh crore. According to a recent disclosure to the stock exchange, SBI confirmed that credit growth has registered a year-on-year growth of 15.24% Adding to this data was the stark observation that while the domestic aspect advanced by 26.26% year-on-year, the specially claimed ‘corporate progress’ 11 lakh crore was registered in arrears, while ‘Agricultural Advances’ In the increase in credit growth, Rs. 3 lakh crores is the share.
Year-on-year reduction Total Provisions Rs. 3,315 crores down by almost 50% to Rs. 1,609 crores.
Dinesh Khara, Chairman, SBI, noted that there has been strong credit expansion across all sectors and the corporate segment has seen significant growth with growth of 16% over last year. Moreover, GNPA has reached a final low of 2.24 percent, the lowest in the last decade.
Anticipating a modest change in incremental provisions, SBI will bring about market changes with loan repricing Based on FY24, SBI forecasts that credit expansion will confidently maintain a steady growth rate of 15-16 per cent while deposit growth will remain steady at 13-14 per cent.
“We are already in the process to hire around 11,000 to 12,000 employees in FY25,” added Khara.
