The country’s largest lender, State Bank of India Ltd. (SBI), on May 3, announced a 10 % fall in standalone net profit at Rs 18,643 crore during the fourth quarter. SBI had earned a profit of Rs 20,698 crore in the January-March period of 2023-24. The bank's board has declared a dividend of Rs 15.90 per equity share for FY25.
SBI said in a regulatory filing that the total income increased to Rs 1,43,876 crore in the March quarter from Rs 1,28,412 crore in the same period a year ago.
During the quarter, the bank earned an interest income of Rs 1,19,666 crore as against Rs 1,11,043 crore a year ago.
The lender saw an improvement in asset quality, with gross non-performing assets (NPAs) declining to 1.82% of the total advances in the fourth quarter from 2.24 % as at March-end 2024. Similarly, net NPAs eased to 0.47 per cent as against 0.57 per cent.
On a consolidated basis, SBI's net profit in the quarter fell 8 per cent to Rs 19,600 crore as against Rs 21,384 crore in the same period a year ago. Total income, however, increased to Rs 1,79,562 crore from Rs 1,64,914 crore.
For entire financial year 2024-25, the bank reported 16 per cent increase in profit on a standalone basis at Rs 70,901 crore as against Rs 61,077 crore in the previous year.
Besides, the board has approved raising equity capital of up to Rs 25,000 crore (including share premium) in one or more tranches during 2025-26 through Qualified Institutional Placement (QIP)/ Follow on Public Offer (FPO) or any other mode.
SBI Chairman CS Setty said, "Though the Indian economy is less impacted by tariffs, the uncertainty over tariffs will impact the economy and investment scenario."
"Without raising capital, the bank's growth will not be impacted. Benign asset quality is likely to continue for more period," SBI Chairman CS Setty said.
"Taxation benefits will help the lower end customers to rethink about personal loans," CS added.
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