SBI (State Bank of India), India’s largest public sector lender, announced its financial results for the fourth quarter of the fiscal year 2023-24 on Thursday, surpassing market expectations and displaying a strong performance.
The bank’s performance was driven by significant growth across key financial metrics, including net profit, interest earnings and gross advances.
SBI’s Financial Performance
Net Profit and Dividend
SBI reported a standalone net profit of ₹20698 crore for Q4 FY24 – a substantial 24% increase from the same quarter last year when the profit stood at ₹16694 crore.
This profit figure exceeded market estimates, which were anticipated to be around ₹16695 crore.
SBI’s Board recommended a dividend payout of ₹13.70 per share.
Shareholders eligible for this dividend will be determined based on their ownership on 22 May, 2024, with the dividend payment scheduled for 5 June, 2024.
Interest Earnings and NII
Interest earnings witnessed a strong growth of 19% year-on-year (YoY), reaching ₹111043 crore during the quarter, compared to ₹92951 crore in the previous year.
SBI’s net interest income (NII) for Q4 stood at ₹41655 crore – a modest 3% YoY growth over ₹40393 crore in the previous year.
Gross Advances and Deposit Growth
Gross advances increased by 15% YoY to ₹3767535 crore, indicative of strong loan demand and a healthy credit portfolio.
The total deposits during the quarter amounted to ₹4916077 crore – an 11% YoY increase, indicative of strong liquidity and customer trust.
Asset Quality
SBI’s asset quality showed improvement, with gross non-performing assets (GNPA) for the quarter decreasing by 7% YoY to ₹84276 crore.
Net NPAs were reported at Rs 21051 crore, down by 2% YoY.
Fiscal Year Performance
For the full fiscal year 2023-24 (FY24), SBI reported a net profit of ₹61077 crore, marking a 22% YoY growth.
The return on assets (ROA) for FY24 was reported at 1.04% and the return on equity (ROE) stood at 20%.
Market Response
Following the announcement of the results, SBI’s stock rose by 3% during trading hours to reach a day’s high of ₹834 on the National Stock Exchange (NSE).
