SBI Q4 FY24 Results: Net Profit Surges 24%, Beats Estimates
SBI Results 2024: Key Highlights
– Net Profit Surge : State Bank of India (SBI) reported a significant rise in net profit, increasing by 24% year-on- year (YoY) to ₹20,698 crore, surpassing analyst estimates.
– Net Interest Income (NII) Growth: SBI’s NII experienced a marginal growth of 3.1% YoY, reaching ₹41,656 crore in the fourth quarter of FY24.
– Q4 Performance: The bank’s net profit for Q4FY24 stood at ₹20,698 crore, marking a substantial growth from ₹16,694.5 crore in the corresponding quarter of the previous year.
– Improvement in Asset Quality: SBI witnessed an improvement in asset quality during the March quarter, with Gross Non-Performing Assets (GNPA) decreasing by 2.9% and Net NPA declining by 6.1% quarter-on- quarter(QoQ).
– Dividend Declaration: The Central Board of SBI declared a dividend of ₹13.70 per equity share for FY24.
- SBI Results 2024: Stock Performance
– Market Reaction: Following the announcement of the Q4 results, SBI’s share price surged by over 3% to hit a fresh 52-week high, reflecting investor optimism about the bank’s performance.
– Closing Prices: On the Bombay Stock Exchange (BSE), SBI shares closed 1.27% higher at ₹820.70 apiece, while on the National Stock Exchange (NSE), the stock ended 1.13% higher at ₹820.00 per share.
- Financial Performance for FY24
– Net Profit for FY24: SBI’s net profit for the fiscal year 2023-24 stood at ₹61,077 crore, marking a robust growth of 21.59% YoY, after accounting for wage settlement and one-time exceptional item of ₹7,100 crore.
– Net Interest Income (NII) Growth: NII for FY24 increased by 10.38% YoY, reaching ₹41,656 crore.
– Operating Profit: The operating profit for FY24 witnessed a growth of 12.05% YoY, amounting to ₹93,797 crore.
– Margin Performance: SBI’s Whole Bank Net Interest Margin (NIM) marginally decreased by 9 basis points (bps) YoY to 3.28%, while Return on Assets (ROA) and Return on Equity (ROE) for FY24 stood at 1.04% and 20.32%, respectively.
- Business Growth and Deposits
– Credit Growth : SBI’s credit growth was reported at 15.24% YoY, with domestic advances growing by 16.26% YoY. Corporate advances and agricultural advances crossed ₹11 lakh crore and ₹3 lakh crore, respectively.
– Deposit Growth: Whole Bank Deposits grew by 11.13% YoY, out of which Current Account Savings Account (CASA) Deposits grew by 4.25% YoY. As of March 31, 2024, the CASA ratio was recorded at 41.11%.
Operational Highlights
– Pre-Provisions Operating Profit (PPoP): PPoP for Q4FY24 grew by 16.76% YoY, amounting to ₹28,747.55 crore.
– Provisions: SBI’s provisions for the March 2024 quarter were reported at ₹1,609.8 crore, compared to ₹687.5 crore QoQ and ₹3,315.7 crore YoY.
- Analyst Expectations and Forecasts
– Margin Expectations: Analysts anticipate a marginal fall in margins by 9 bps QoQ, with NII growth estimated at 0.6% QoQ. PPoP is expected to decline sharply by 27.7% QoQ due to one-time staff cost.
– Loan Growth Forecasts: Strong loan growth of over 16% YoY is expected, primarily supported by retail and SME segments.
– Asset Quality and Provisions: Analysts predict stable asset quality, with recovery and upgrades expected to be robust, leading to lower GNPL sequentially.
The fourth-quarter results of SBI for FY24 demonstrated robust financial performance, with significant growth in net profit and NII. The bank’s efforts towards improving asset quality and maintaining healthy business growth have been well-received by investors, as reflected in the surge in its share price post-announcement. Looking ahead, SBI’s focus on sustaining loan growth, managing margins, and maintaining stable asset quality will be crucial for its continued success in the banking sector.
