SBI’s consolidated net profit surged by 18.18% year-over-year to Rs 21,384.15 crore for the quarter ending March 31, 2024, from Rs 18,093.84 crore in the corresponding period last year.
On a standalone basis, the bank’s profit increased significantly by 24%, reaching Rs 20,698.35 crore up from Rs 16,694.51 crore a year ago. This robust growth exceeded analyst expectations which predicted a net profit of Rs 13,400 crore, underscoring the bank’s strong operational performance and enhanced profitability.
For the fiscal year 2023-24, SBI reported a consolidated net profit of Rs 67,084.67 crore, marking a 20.55% increase from Rs 55,648.17 crore in FY23. The bank’s total income for the fourth quarter rose sharply to Rs 1.28 lakh crore from Rs 1.06 lakh crore in the year-ago period. Despite this increase, operating expenses showed a marginal rise to Rs 30,276 crore from Rs 29,732 crore.
Highlighting its financial health, SBI announced a dividend of Rs 13.70 per share for FY24, reflecting its confidence in sustained profitability.
In terms of asset quality, the bank demonstrated significant improvement. The gross non-performing assets (GNPA) ratio improved to 2.24% as of March 31, 2024, down from 2.78% a year ago. Additionally, the net NPA ratio decreased to 0.57% from 0.67% last year.
SBI also reported strong loan growth during the quarter, which has been the best in over eight quarters, with domestic advances increasing by 16.26% year-over-year. Specifically, corporate advances and agricultural advances exceeded Rs 11 lakh crore and Rs 3 lakh crore, respectively.
As of 1410 hours on May 9, SBI shares were trading nearly 3% higher at Rs 834.40 each, indicating positive investor sentiment following the earnings announcement.
This financial uptick for SBI comes amid an overall enhancement in the banking sector’s performance, driven by increased loan demand and a favorable economic environment, setting a robust foundation for continued growth in the upcoming fiscal year.
