SBI Q4 results: India’s biggest bank beats estimates with Rs 16,695 crore PAT, announces Rs 11.3 per share dividend
SBI Q4 results, dividend: State Bank of India (SBI) reported an 86.5 per cent year-on-year jump in standalone net profit to Rs 16,694.5 crore for the quarter ended March 2023, beating analysts' estimates.
SBI Q4 results, dividend: State Bank of India (SBI) — the country's largest lender by assets — on Thursday reported a standalone net profit of Rs 16,694.5 crore for the quarter ended March, beating analysts' estimates by a huge margin. The PSU banking behemoth's net profit grew 83.2 per cent compared with the corresponding period a year ago.
SBI's net interest income (NII) — or the difference between interest earned and interest paid — stood at Rs 40,392.5 crore for the three-month period as against Rs 31,197.9 crore for the quarter ended March 2022, according to a regulatory filing.
According to Zee Business research, SBI's quarter net profit was estimated at Rs 14,800 crore and NII at Rs 40,000 crore.
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SBI said its operating profit increased 24.9 per cent to Rs 24,621 crore compared with the year-ago period.
Its net interest margin (NIM) — a key measure of profitability — came in at 3.84 per cent, better than 3.69 per cent for the previous three months as well as 3.4 per cent for the quarter ended March 2022. That was also better than Zee Business analysts' estimate of 3.6 per cent.
Gross advances increased 16 per cent on a year-on-year basis, according to a statement.
Its credit cost improved by 33 basis points on year to 0.16 per cent for the March quarter.
SBI Q4 results: asset quality
SBI staged improvement in its asset quality, measured as a percentage of non-performing assets (NPAs) or bad loans in total loans.
Its gross NPAs came in at 2.78 per cent for the March quarter as against 3.14 per cent for the previous three months, and net NPAs narrowed to 0.67 per cent from 0.77 per cent.
The lender's slippage ratio — the rate at which a loan turns bad — improved to 0.41 per cent for the quarter ended March 2023 from 0.43 per cent for the year-ago period. The ratio remained steady sequentially.
The bank's board recommended a dividend of Rs 11.3 per share, subject to shareholders' nod. That translates to a payout of 1,130 per cent given the face value of Re 1 per share.
SBI dividend history
Here’s a look at SBI's dividend announcements over the last few years:
|Dividend amount (in rupees)||Dividend type||Ex-dividend date|
|7.1||FINAL||May 25, 2022|
|4||FINAL||Jun 3, 2021|
|2.6||FINAL||May 26, 2017|
|2.6||FINAL||Jun 3, 2016
SBI shares ended 2.1 per cent lower at Rs 574.2 apiece on BSE, amid overall weakness in the market, after the earnings announcement.