SBI reported its highest ever net profit of £2.06 bn in Q4 - the biggest quarterly profit by any Indian bank. The state owned lender’s profit rose 24% from £1.66 bn in the year-ago period, beating analyst expectations of around £1.4 bn.
SBI’s profit is also the highest reported by any entity in this quarter. Reliance Industries posted a net profit of £1.89 bn in Q4, while HDFC Bank, which was previously the most profitable lender, reported a profit of £1.65 bn in the same period. SBI’s FY24 net profit stood at £6.11 bn - a growth of 22% over the previous year - after accounting for wage settlement and a one-time exceptional item of £710 mn.
After the announcement, the bank’s shares closed at Rs 820, a 1% gain despite an over 1,000-point fall in the sensex. The gain added over £800 mn to SBI’s market cap, which now stands at £73 bn behind ICICI Bank (£78 bn) and HDFC Bank (£110 bn). SBI declared a dividend of Rs 13.7 per share.
The bank’s margins improved because the bank’s credit growth during the quarter outpaced deposit growth. As of the end of March 2024, the bank’s deposits stood at £476 bn, an increase of 11.1% from £442 bn a year earlier. Advances grew 15.2% to £377 bn, up from £327 bn a year earlier.
