State Bank of India: SBI shares to turn ex-dividend today; key details

Shares of State Bank of India (SBI) will turn ex-date for dividend on Wednesday. Today is also the record date for determining the eligibility of shareholders entitled to receive dividend on equity shares.

The PSU bank had declared a dividend of Rs 13.70 per share on a face value of Rs 10 for financial year FY2023-24. The dividend will be paid on June 5. SBI had announced a dividend of Rs 11.30 per share in FY23, Rs 7.10 per share in FY22 and Rs 4 per share in FY21.

State Bank of India reported an all-time high quarterly profit in the March quarter and surpassed estimates on net interest income (NII), other income and opex. The fourth quarter return on asset (RoA) was strong 1.36 per cent, pushing FY24 RoA to 1.04 per cent.

"We build-in loan CAGR of 15 per cent for FY24–26E, at the upper-end of guidance, which coupled with muted opex growth (off high base) should lead to sector-leading 20 per cent CAGR in core PPoP in the same period. We estimate the bank to deliver 100/90bps RoA for FY25/26. Maintain BUY with an SoTP-based revised target of Rs 980 (earlier Rs 780)," ICICI Securities said.

The brokerage said it sees merit in the rise in multiple given sustained strong execution, healthy deposits franchise, superior pre-provision operating profit (PPoP) growth, continued comfort on asset quality and high visibility of over 16 per cent RoE.

YES Securities maintained ‘Buy’ rating on SBI with a revised price target of Rs 1,000. While capital ratios remain lower than peers, the SBI management has reiterated headroom for growth, it said adding that the guidance for stable NIM sounded largely believable.

Antique Stock Broking said the performance was strong as it upgraded FY25 profit estimate by 9 per cent to factor in better NIMs and lower credit cost. It has 'BUY' with a revised target of Rs 900.