SBI's Financial Performance and Future Plans

MUMBAI: The State Bank of India (SBI) has reported a net profit of Rs 18,643 crore for the January-March quarter, marking a 9.9% decrease from the previous year's Rs 20,698 crore. This decline is primarily attributed to a one-time provision for increased pension liabilities.

Behind the Numbers

The bank implemented a uniform 50% hike in pensions and adjusted payouts for inflation, leading to a 57% rise in total provisions to Rs 12,643 crore, with Rs 7,100 crore allocated to pension adjustment.

Looking Ahead

SBI announced its intention to raise Rs 25,000 crore through the issue of new shares, its largest capital raise to date and the first in over a decade. Additionally, the board declared a dividend of Rs 15.9 per share.

Operational Highlights

Excluding the pension provision, the quarter showcased stronger performance with an 8.8% increase in operating profit to Rs 31,289 crore. Non-interest income surged by 39.4% to Rs 24,210 crore, significantly driven by treasury income which nearly doubled to Rs 6,870 crore. Asset quality improved, with gross non-performing assets falling below 2% for the first time and net NPAs declining to under 0.5%.