State Bank of India (SBI), the largest bank in India, has reported a significant 83% increase in standalone net profit, reaching Rs 16,695 crore for the quarter ending in March. This figure marks a substantial rise from the net profit of Rs 9,113 crore achieved in the same quarter of the previous year.
The Board of SBI has announced a dividend of Rs 11.30 per equity share (1130%) for the fiscal year that concluded in March 2023. The dividend payment is scheduled for June 14.
In the fourth quarter, net interest income (NII) witnessed a growth of 29%, amounting to Rs 40,393 crore, as opposed to Rs 31,198 crore in the corresponding quarter of the previous year.
Both net profit and NII exceeded the estimates of the ET Now poll. The poll had projected a profit of approximately Rs 15,000 crore and NII of Rs 40,000 crore.
Provisions (excluding tax) and contingencies registered a substantial decline of 54%, amounting to Rs 3,316 crore for the quarter under review, in comparison to Rs 7,237 crore in the corresponding period last year.
During the January-March period, the state-owned bank reduced its provisions for non-performing assets (NPAs) by more than half, reaching Rs 1,278 crore.
Concerning asset quality, the gross NPA ratio improved to 2.78% as of the March quarter, exhibiting a decline from 3.14% in the December quarter and 3.97% in the March quarter of the previous year. However, the net NPA ratio was lower at 0.67% in the fourth quarter.
