🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

SBI Impresses in Q4: Strong Profit Growth Leads to Revised Valuation

Published 05/12/2024, 06:11 AM
SBI
-

State Bank of India (NS:SBI), India's largest state-owned lender, has reported impressive financial results for the fourth quarter of the fiscal year 2023-24 (FY24), surpassing market expectations. In Q4FY24, SBI witnessed a substantial 24% year-on-year (YoY) surge in net profit, reaching INR 20,698 crore, outperforming analysts' estimates of INR 13,692 crore. This robust performance underscores the bank's resilience and effective management strategies amid evolving market dynamics.

Moreover, SBI's net interest income (NII) for Q4FY24 saw a slight increase of 3.1% YoY, totaling INR 41,656 crore, surpassing market expectations of INR 40,920 crore. However, the domestic net interest margin (NIM) experienced a YoY decline to 3.47% from 3.84%, reflecting ongoing market challenges and competitive pressures.

Offer: Unlock the true value of stocks with InvestingPro by clicking here – your ultimate stock analysis tool! Say goodbye to inaccurate valuations and make informed investment decisions with accurate intrinsic value calculations. Get it now at a limited-time discount of 69%, only INR 216/month!

Additionally, SBI demonstrated improvement in asset quality during the quarter, with Gross Non-Performing Assets (NPA) reducing by 2.9% to INR 84,276.33 crore in Q4FY24. The Gross NPA ratio fell by 18 basis points to 2.24%, while the Net NPA ratio declined by 7 bps to 0.57%, sequentially. These improvements indicate the bank's proactive measures to address asset quality concerns and mitigate risks.

The Central Board of SBI declared a dividend of INR 13.70 per equity share (1,370%) for FY24, highlighting the bank's commitment to enhancing shareholder value. The dividend record date is set for May 22, with the payment scheduled for June 5, 2024, offering investors a steady income stream amidst volatile market conditions.

Image Source: InvestingPro+

Furthermore, SBI's loan growth remained robust, with credit expanding at 15.24% YoY, reaching INR 37,67,535 crore by the end of March 2024. Total deposits grew by 11.13% YoY to INR 49,16,077 crore, with the CASA ratio standing at 41.11%. These figures underscore SBI's strong customer base and its ability to attract deposits and deploy funds effectively.

SBI's strong performance in Q4FY24 reflects its resilient business model and effective risk management practices which have consequently revised the SBI’s fair value to INR 955 per share, the highest so far. Prior to the result, the fair value was INR 898 The stock is trading near an all-time high, and even from here, there seems to be a good upside of 15.7%.

Hurry up to grab your offer of 69% off on InvestingPro today by clicking here, before the limited-time discount is over!

Also Read: Pick: Stock Jumps 5%, Shows Strength for Higher Levels

X (formerly, Twitter) - Aayush Khanna

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.