An SBI branch.
Credit: Reuters photo.
New Delhi: State Bank of India’s net profit in the January-March 2024 (Q4FY24) quarter surged 24 per cent year-on-year to Rs 20,698 crore, on the back of higher interest income, cost control and low provisions.
The bank’s interest earnings jumped to Rs 1.11 lakh crore in Q4 as compared to Rs 92,951 crore recorded in the corresponding period of the previous year, registering a year-on-year growth of 19 per cent. Interest expenditure during the quarter increased by 32 per cent to Rs 69,387 crore.
The country’s largest public-sector lender’s Q4 numbers have beaten analysts’ estimates by a wide margin, which was reflected in the stock price. SBI’s share price hit a record high of Rs 839.60 on the Bombay Stock Exchange, shortly after the financial numbers were announced.
The scrip closed 1.14 per cent higher at Rs 819.65. This was in contrast to around 1.5 per cent dip in the benchmark Sensex.
For the full fiscal 2023-24, the bank’s net profit stood at Rs 61,077 crore, which is 21.59 per cent higher when compared with the previous year. Operating profit for FY24 grew by 12.05 per cent to Rs 93,797 crore.
“Robust overall loan growth of 15 per cent driven by all the segments while keeping costs stable, SBI delivered an operational beat by a huge margin, supported by modest NIM expansion, stagnant employee cost, and disciplined control over operating expenses,” Master Capital Services said in a note.
Management’s guidance aims to grow the credit book between 14-16 per cent with a strong corporate book pipeline at Rs 4 trillion while maintaining the NIMs. “Therefore, we anticipate credit growth to outpace the industry average,” it added.
SBI’s Board at its meeting held on Thursday approved a dividend of Rs 13.70 per equity share for the financial year 2023-24. The record date for determining the eligibility of shareholders, entitled for the dividend, has been fixed as May 22, 2024, while the dividend payment date is fixed as June 5, 2024.
Meanwhile, net profit of Punjab National Bank (PNB) surged by 160 per cent to Rs 3,010 crore in the quarter ended March 2024. On a sequential basis, the state-run lender’s net profit posted an increase of 35 per cent.
Indian Overseas Bank (IOB) said its net profit increased by 26.54 per cent year-on-year to Rs 808 crore in the fourth quarter of 2023-24 helped by a robust 28 per cent surge in interest income. Gross NPA of Indian Overseas Bank improved to 3.10 per cent as of March 31, 2024 as against 7.44 per cent recorded at the end of FY 2022-23.