SBI Q4 results: Net profit jumps 83% to Rs 16,695 crore; lender announces dividend of Rs 11.30 per share

State Bank of India (SBI), the country's largest lender in terms of assets, on Thursday posted a sharp year-on-year (YoY) rise in its fourth-quarter profit during the financial year 2022-23 (FY23). The bank's Q4 profit surged 83.18 per cent to Rs 16,694.51 crore over Rs 9,113.53 crore in the same period a year ago. Sequentially, the lender recorded a 17.52 rise in its March 2023 quarter profit. The bank earned Rs 92,951.06 crore as interest income in Q4 FY23 against Rs 70,733.25 crore in the year-ago period.

For FY23, SBI said its net profit crossed the Rs 50,000 crore mark and stood at Rs 50,232 crore, witnessing a growth of 58.58 per cent (YoY).

The lender also announced a dividend of Rs 11.30 per equity share. "The bank's Board has declared a dividend of Rs 11.30 per equity share (1,130%) for the financial year ended March 31, 2023. The date of payment is fixed on June 14, 2023, and the dividend warrants will be dispatched before the date of payment, which will be payable, in India, at par at all branches of SBI, irrespective of the amount," SBI stated in an exchange filing.

Net non-performing asset (NPA) ratio improved to 0.67 per cent in Q4 FY23 from 0.77 per cent, quarter-on-quarter (QoQ), and 1.02 per cent, YoY. Gross NPA ratio fell to Rs 2.78 per cent in March 2023 quarter from 3.14 per cent in Q3 FY23 and 3.97 per cent in Q4 FY22.

Watch: HAL, Bharat Dynamics among stocks at multi-year highs; multibaggers give 5-year breakouts

Provisions and contingencies reduced to Rs 3,315.71 crore in Q4 FY23, down 54.19 per cent from Rs 7,237.45 crore in the same period last year.

SBI's debt-to-equity ratio moved slightly lower to 0.66 per cent in the fourth quarter of FY23 against 0.71 per cent in Q4 FY22.

On the other hand, the lender's total expenditure surged 30.84 per cent to Rs 82,291.35 crore against Rs 62,896.57 crore in the corresponding quarter last year.

India's largest bank has once again proved to be getting bigger by posting an 83 per cent rise in standalone profit, which reflects a substantial rise and shows that it is ahead of the estimates, said Rohan Mehta, Founder and Portfolio Manager at Turtle Wealth.

Over the past few years, banks have cleaned up their balance sheets due to better credit growth, bad loan (NPA) recoveries and write-offs.

Shares of SBI were last seen trading 0.77 per cent lower at Rs 582 even as the domestic benchmarks traded higher.

Also Read: Vedanta, Hindustan Zinc, Coal India & REC among top dividend yielding stocks

Also Read: Adani Green, DRL, Just Dial, BOB: Q4 profit up over 100%; should you buy these shares?