SBI Breaks 12-Year Silence on Dividend, Eyeing Rs 25k Crore Fundraise 🚀
State-Owned Bank SBI Declares High Dividend: Rs 15.90 Paid Out After 12 years; Aims to Raise Additional Rs 25,000 Crore
The State Bank of India (SBI) just dropped a long-awaited surprise for its investors! Announced on Saturday, May 3, SBI declared a record-breaking dividend of Rs 15.90 per share, marking the bank's largest payout in over a decade. But that's not all, SBI's board also approved plans to raise an impressive Rs 25,000 crore in the upcoming fiscal year to fuel its growth ambitions.
Ring the Bell: A Dividend Worth Smiling About! 💰
With a smile on the faces of SBI shareholders, the bank has unveiled a final dividend of Rs 15.90 for the financial year ended March 2025. The record date for this historic payout is set for May 16, with payments being distributed to accounts by May 30. The last time enthusiasts received such a hefty sum was back in 2013, with a Rs 41.50 dividend.
Stock Market Dive: M&M shares top charts at 19.65% profit## A Mixed Bag for Q4 Performance 🎯
While the dazzling dividend has stolen the spotlight, SBI's earnings during Q4 2024-25 depicted a mixed bag. The lender's net profit dipped nearly 10% year-on-year to Rs 18,643 crore, with provisions for bad loans soaring by 300% to Rs 6,442 crore. However, it's essential to remember that the lender still managed to grow its operating profit by 8.83% to Rs 31,286 crore, and Net Interest Income (NII) edged up by 2.69% to Rs 42,775 crore.
Becoming a Member of the Rs 1 Lakh Crore Club 🏆
Despite the Q4 stumble, the year 2024-25 turned out to be an exceptional one for SBI overall. The bank recorded an operating profit surpassing Rs 1 lakh crore for the first time, reaching Rs 1,10,579 crore. The jump was a robust 17.89% when compared to the previous year. Additionally, the full-year net profit stood at an impressive Rs 70,901 crore. Notably, gross NPAs dropped significantly by 8.78% YoY to Rs 76,880 crore. Additionally, the Gross NPA ratio improved to a healthy 1.82%.
Taking Strides Towards Growth: Fundraising on the Horizon ⚔️
The icing on the cake is SBI's plan to raise up to Rs 25,000 crore in FY2025-26 through the QIP or FPO routes, demonstrating the bank's commitment to further fueling its growth.
Wall Street Watch: Top three stocks riding the FII wave## Steady as She Goes: SBI's Stock Performance 📈
As of today's intraday session, the ** price of SBI's shares** slipped by 1.4%, trading at Rs 788.95. Over the last five days, the stock has tumbled by 4%. However, over the past six months, it has shown resilience with a gain of around 5%. Looking back even further, the stock has lost 2% over the past one year but remained relatively steady on a YTD basis, slipping only 0.5%. The company currently holds a market capitalization of a whopping Rs 7.03 lakh crore. Its 52-week high stands at Rs 912, while the 52-week low is modestly priced at Rs 680 per share.
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Insights:SBI's bold dividend declaration of Rs 15.90 per share in FY2024-25 could be attributed to the bank's improved earnings, strengthened asset quality, and smart capital management strategies despite a somewhat lackluster Q4 performance. The bank's ongoing capital raise plan of up to Rs 25,000 crore through QIP or FPO routes suggests the dividend distribution may precede fresh equity issuance to stave off concerns of shareholder dilution. This move indicates a balance between rewarding shareholders and managing growth capital needs effectively.
- Oliviya, who is interested in finance and investing, is closely following the State Bank of India (SBI) after they declared a record-breaking dividend of Rs 15.90 per share, the largest payout in over a decade.
- SBI's board has approved plans to raise an impressive Rs 25,000 crore in the upcoming fiscal year to fuel its growth ambitions, which has caught the attention of stock market investors.
- As Oliviya looks to diversify her portfolio, she considers SBI's stocks along with other market investments, including Defi, BSE, and PSU.
- The recent drop in SBI's share price, despite the historical dividend announcement, has led some traders to question whether this offers a good entry point for their investment.
- While evaluating her business ventures, Oliviya also keeps an eye on major market trends, such as the Q4 performance of various companies like M&M and their profit graphs.
- In her quest for knowledge, Oliviya utilizes websites and apps to stay updated on stock market news, financial analyses, and business updates, ensuring she makes informed decisions for her portfolio.
- As Oliviya examines her investment strategy for the year 2025, she focuses on companies with solid earnings, strengthened asset quality, and smart capital management, much like SBI.
