State Bank of India (SBI), the country’s largest public sector lender, reported significant improvements in its asset quality in the fourth quarter of FY24, even as provisions rose sharply on a year-on-year basis. The bank’s gross non-performing assets (GNPA) declined to 1.82%, from 2.07% in the previous quarter. Net NPA also improved to 0.47%, down from 0.53% sequentially, reflecting SBI’s continued focus on strengthening its balance sheet. In absolute terms, gross NPA fell from ₹84,360 crores to ₹76,880 crores, while net NPA reduced from ₹21,378 crores to ₹19,667 crores.
However, provisions spiked significantly during the quarter. SBI set aside ₹6,442 crore as provisions in Q4 FY24, up from ₹1,610 crore in the same quarter last year and ₹911 crore in Q3 FY24. This could be attributed to a more cautious stance in light of future macroeconomic uncertainties. Slippages stood at ₹4,319 crore, marginally higher than ₹4,146 crore in the previous quarter.
SBI’s long-term performance has been robust. Over the last three years, the bank has delivered a compounded profit growth of 30% and sales growth of 19%, supported by improved lending activity and a reduction in credit costs. The return on equity for FY24 stands at 17%, a strong indicator of efficient capital use. However, the stock has seen a mild decline of 4% in the past year, though it continues to deliver a 5-year CAGR of 36%.
The bank’s shareholding structure remains largely stable. Promoter holding stands at 57.43%, with foreign institutional investors (FIIs) owning 9.94% and domestic institutional investors (DIIs) holding 24.92%. Public shareholding is at 7.54%, indicating a relatively strong base of institutional backing.
Also Read: Indian Bank Q4 Results: Net Profit Surges 32% YoY, Asset Quality Improves Further
Analyst sentiment on SBI remains positive. Among the 41 analysts covering the stock, 68% recommend a ‘Buy’, 10% rate it as ‘Outperform’, and 20% suggest a ‘Hold’. Only 2% have issued a ‘Sell’ call, with none assigning an ‘Underperform’ rating — a sign of confidence in the bank’s financial stability and growth strategy.
With improving asset quality, steady operational performance, and strong institutional support, SBI continues to stand out as a reliable choice for long-term investors looking at the Indian banking sector.
Disclaimer
This article is for educational and informational purposes only. We are not SEBI-registered investment advisors; none of this content should be considered financial advice. Please consult a certified financial planner or advisor before making any investment decisions.
Aditya Gaur is the founder of FinanceXaditya and a seasoned stock market investor with over 7 years of experience. Known for building India’s first public dividend growth portfolio showcase, he shares time-tested strategies and real insights that help everyday investors create wealth. With 50,000+ followers across social media, Aditya has become a trusted voice in personal finance and long-term investing.
Pingback: Kotak Mahindra Bank Q4 Results: Net Profit Drops 14% YoY, Asset Quality Shows Improvement - financeXaditya