State Bank of India(SBI) today reported a record net profit of ₹6451 crore for the quarter ended March 31, 2021, helped by lower provisions for bad loans. The fourth quarter profit is a big jump from ₹3,581 crore in the year-earlier quarter. The central board of the bank has also declared a dividend of Rs. 4.00 per equity share for the financial year ended 31st March,2021, its first payout since May 2017, when it had rewarded shareholders with ₹2.6 per share. The date of payment of dividend is fixed on 18th June, 2021, the bank said.
India's biggest bank, State Bank of India (SBI) today reported a record net profit of ₹6451 crore for the quarter ended March 31, 2021, helped by lower provisions for bad loans. The fourth quarter profit is a big jump from ₹3,581 crore in the year-earlier quarter. The central board of the bank has also declared a dividend of Rs. 4.00 per equity share for the financial year ended 31st March,2021, its first payout since May 2017, when it had rewarded shareholders with ₹2.6 per share. The date of payment of dividend is fixed on 18th June, 2021, the bank said.
According to a Bloomberg estimate of 10 analysts, the public sector lender was expected to report a profit of ₹6,166.2 crore in the three months to March, up from ₹3,580.8 crore in the same period last year.
According to a Bloomberg estimate of 10 analysts, the public sector lender was expected to report a profit of ₹6,166.2 crore in the three months to March, up from ₹3,580.8 crore in the same period last year.
The lender reportedly received a windfall of nearly 40 billion rupees as part of dues owed by bankrupt steelmaker Bhushan Power and Steel.
On Covid impact, the bank said: "The spread of the pandemic across the globe has resulted in decline in economic activities and increase in movement in financial markets. In this situation, Bank is gearing up itself on all fronts to meet the challenges. The situation continues to be uncertain and the Bank is evaluating the situation on an ongoing basis. Major challenges for the Bank could be from extended working capital cycles, fluctuating cash flow trends and probable inability of the borrowers to meet their obligations against the loans timely."
"The bank is proactively providing against the challenges of likely stress on the bank's assets. A definitive assessment of the impact of COVID-L9 is dependent upon circumstances as they evolve in the subsequent period."
SBI shares, which are up about 40% so far this year, were trading marginally higher at ₹385.95 in late trade today.
Most Indian banks have reported strong numbers for the final quarter of the last financial year on a lower base and as retail lending picked up before the second coronavirus wave. Collections and credit growth have since been hit and lenders are now on a "wait-and-watch" mode.
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