State Bank of India (SBI), India's largest bank, reported a strong financial performance for the quarter ended March 2023. The bank's standalone net profit grew by 83% to ₹16,695 crore, while its net interest income (NII) rose by 29% to ₹40,393 crore. Both of these figures were above the expectations of analysts.
The bank's strong performance was driven by a number of factors, including higher interest rates, a growing loan book, and lower provisions for bad loans. SBI's gross non-performing asset (NPA) ratio improved to 2.78% as of March 2023, from 3.14% in the December quarter and 3.97% in the March quarter of the previous year. Its net NPA ratio was also lower at 0.67% in the fourth quarter.
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The bank's board of directors has recommended a final dividend of ₹11.30 per equity share for the financial year ended March 2023. The dividend will be credited to the shareholders' accounts on or before June 14, 2023.
SBI's strong performance is a positive sign for the Indian banking sector as a whole. The bank's improved asset quality and profitability are likely to boost investor confidence in the sector.
