SBI Q4 Results: Net Profit Jumps 24% YoY To Rs 20,699 Cr; Rs 13.70/Share Dividend Declared

On Thursday, the Indian multinational public sector bank State Bank of India declared the financial results for the quarter and year ended 31st March 2024. SBI reported a net profit of Rs 20,698.35 Cr in the quarter under review compared to Rs 16,694.51 Cr in the year-ago quarter representing a growth of 24% YoY on a standalone basis. Compared to Rs 55,648.17 crore in FY23, the consolidated net profit for the fiscal year 2023-2024 jumped by 20.55 per cent to Rs 67,084.67 crore.

The bank's net income stood at Rs 1,28,411.88 Cr in Q4FY24 which was Rs 1,06,912.46 Cr in Q4FY23.

Net Profit for FY24 was Rs 61,077 crores, up 21.59% YoY when wages settlement and a one-time exceptional item of Rs 7,100 crores are taken into consideration. Operating profit increased by 12.05% YoY to Rs 93,797 crores in FY24. The bank's ROA and ROE for FY24 were 1.04% and 20.32%, respectively, while its ROA for Q4FY24, at 1.36%, climbed by 13 basis points year on year. SBI's net interest income (NII) grew by 10.38% year on year in FY24, whilst NIM dropped by 9 basis points to 3.28% YoY.

With domestic advances expanding by 16.26% YoY, SBI's credit growth currently stands at 15.24% YoY. SME Advances (20.53% YoY) drove the rise in domestic advances, with Agri Advances growing by 17.92% YoY. Corporate loans and retail personal advances both had YoY growth of 16.17% and 14.68%, respectively. Foreign Office Advances at the bank increased by 9.47% YoY.

CASA deposits jumped by 4.25% YoY, while total bank deposits climbed by 11.13% YoY. As of March 24, 41.11% represents the CASA ratio. The bank's Net NPA ratio climbed by 10 bps YoY to 0.57%, while its Gross NPA ratio rose by 54 bps YoY to 2.24%. While the bank's slippage ratio for FY24 climbed by 3 bps YoY to 0.62%, its Provision Coverage Ratio (PCR) remains at 75.02%. According to SBI, its credit cost for FY24 was 0.29%, up 3 basis points YoY.

As of the end of FY24, the Capital Adequacy Ratio (CAR) was 14.28%. For FY24, domestic NIM was down 15 basis points at 3.43%. All divisions of the bank had strong growth, with RAM surpassing Rs 20 trillion and Agri surpassing Rs 3 trillion.

"Further, pursuant to Regulation 43 and Regulation 30 (6) of SEBI (LODR) Regulations,2015 we inform that the Central Board of the Bank, at its Meeting held today, has declared a Dividend of Rs 13.70 per equity share (1370%) for the financial year ended 31.03.2024, The record date for determining the eligibility of members entitled to receive dividend on equity shares is Wednesday,22.05.2024 and Dividend payment date is fixed as 05.06.2024," said SBI in a regulatory filing.

SBI Share Price Target

V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT) said, "SBI can be considered to be portfolio stock ahead too. There are certain reasons for that such as its Profitability, Its market Stake in the PSU Banking sector, and its discounted PE ratio as compared to the banking sector's Price to earing ratio. The current Price is 810 and it has the potential to reach 1000 to 1350 within 8 to 2 years. Yes, currently it's in an overbought zone therefore it's likely to correct near 10% to 15% from its current price points and it should be considered as an opportunity to add more. However, we should not try to Time the price but still it is expected to happen in the next 3 months. The dividend yield will be comparatively good so that will be managed if your horizon is to hold it for another 2 years."

"With the current price standing at 810, there is potential for SBIN to reach between 1,000 and 1,350 within the next 8 to 12 years. However, it is noteworthy that the stock is currently in an overbought zone, indicating a likely correction of around 10% to 15% from its current levels. Nevertheless, this correction should be viewed as an opportunity to accumulate more shares rather than an attempt to time the market. This correction is anticipated to occur within the next three months. Furthermore, SBIN's dividend yield remains attractive, particularly for investors with a horizon of at least two years," she further added.

Disclaimer

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