SBI Q4 profit jumps 80% to ₹6,451 crore as bad loans situation improves

The board has recommended a dividend of ₹4 per share or 400% on the face value for the financial year ended March 31, 2021

The country’s largest lender SBI on Friday reported an 80% surge in standalone net profit at ₹6.450.75 crore for the fourth quarter ended March 2021, aided by decline in bad loans.

State Bank of India (SBI) had registered a profit of ₹3,580.81 crore during January-March period of 2019-20, the lender said in a regulatory filing.

Total income of the bank during the March quarter of the last financial year rose to ₹81,326.96 crore, from ₹76,027.51 crore in the same period of 2019-20.

On a consolidated basis, the bank reported a 60% increase in net profit at ₹7,270.25 crore compared to ₹4,557.49 crore in the fourth quarter of the previous fiscal.

With regard to asset quality, gross non-performing assets (NPAs) of the bank improved at 4.98% of gross advances as on March 31, 2021, as against 6.15% by the same period of 2020.

Net NPA or bad loans too came down to 1.50% as on March 31, 2021 from 2.23% in the year-ago period.

For the entire financial year 2020-21, the bank reported a 41% jump in standalone profit at ₹20,110.17 crore, from ₹14,488.11 crore in the previous financial year.

The board has recommended a dividend of ₹4 per share or 400% on the face value for the financial year ended March 31, 2021.

The date of payment of dividend is fixed on June 18, 2021 and the dividend warrants will be dispatched before the date of payment, which will be payable at par at all branches of State Bank of India, irrespective of the amount, it said.

Shares of SBI were trading at ₹398.50 per unit, up 3.63% on BSE shortly after the quarterly numbers were announced.

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