SBI Results: SBI net profit beats estimates, announces dividend; here are 5 key takeaways from Q4 earnings

SBI’s provisions in Q4FY24 came down, while its asset quality also improved. The bank’s credit growth as well as deposit growth during the quarter ended March 2024 remained strong.

SBI share price jumped more than 3% to hit a fresh 52-week high after its Q4 results beat estimates.

Read SBI Q4 Results Highlights here

Here are 5 key takeaways from SBI Q4 results:

1] Net Profit

SBI posted a net profit of ₹20,698 crore in the fourth quarter of FY24, registering a growth of 24% from ₹16,694.5 crore in the year ago quarter. SBI’s net profit was higher than street estimates of ₹13,692 crore.

2] Net Interest Income

SBI’s net interest income (NII), the difference between total interest earned and interest paid, in Q4FY24 increased marginally by 3.1% to ₹41,656 crore from ₹40,392.5 crore in the same quarter last year. NII also beat estimates of ₹40,920 crore.

Domestic Net interest margin (NIM) in Q4 declined by 37 bps to 3.47% from 3.84%, YoY. The bank’s NIM in Q3FY24 was at 3.34%.

Pre-Provisions Operating Profit (PPoP) in Q4FY24 grew by 16.76% to ₹28,747.55 crore from ₹24,621.11 crore, YoY.

Also Read: PNB Q4 results 2024: Net profit jumps 160% YoY. Key highlights you should know

3] Asset Quality

SBI’s asset quality improved during the quarter ended March 2024. The bank’s Gross Non-Performing Assets (NPA) in Q4FY24 decreased 2.9% to ₹84,276.33 crore from ₹86,748.81 crore in Q3FY24. Net NPA declined 6.1% to ₹21,051.1 crore from ₹22,408 crore, QoQ. 

Gross NPA ratio in the March quarter fell 18 basis points (bps) to 2.24% from 2.42%, while Net NPA ratio declined 7 bps to 0.57% from 0.64%, sequentially.

4] Dividend

The Central Board of SBI has declared a dividend of ₹13.70 per equity share (1,370%) for the financial year ended March 31, 2024, The record date for determining the eligibility of members entitled to receive dividend on equity shares is Wednesday, May 22, and the dividend payment date is fixed as June 05, 2024.

Also Read: Asian Paints Q4 Results: Net profit up 1.3% to ₹1,275 crore, revenue drops marginally; dividend declared

5] Deposits & Advances

SBI loan growth in the March quarter remained strong. Credit growth was at 15.24% YoY as gross advances at the end of March 2024 rose to ₹37,67,535 crore from ₹32,69,242 crore at the end of March 2023.

Domestic Advances grew by 16.26% YoY. Corporate Advances and Agri Advances cross ₹11 lakh crore and ₹3 lakh crore, respectively. Foreign Offices’ Advances grew by 9.47% YoY. Retail Personal Advances and Corporate loans registered YoY growth of 14.68% and 16.17%, respectively, SBI said in a release.

Whole Bank Deposits grew at 11.13% to ₹49,16,077 crore from ₹44,23,778 crore, YoY, out of which CASA Deposit grew by 4.25% YoY. CASA ratio stands at 41.11% as on March 31, 2024, SBI said.

FY24 Earnings

SBI’s net profit for FY24 stands at ₹61,077 crore witnessing a growth of 21.59% YoY after accounting for wage settlement and one-time exceptional item of ₹7,100 crore. Net Interest Income (NII) for FY24 increased by 10.38% YoY. Operating Profit for FY24 grew by 12.05% YoY to ₹93,797 crore, SBI said.

Whole Bank NIM for FY24 is marginally down by 9 bps YoY to 3.28%. SBI’s Return on Assets (ROA) and Return on Equity (ROE) for FY24 stand at 1.04% and 20.32%, respectively.

On Thursday, SBI shares ended 1.27% higher at ₹820.70 apiece on the BSE.

Read all Q4 results here

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Published: 09 May 2024, 03:37 PM IST