BENGALURU: State Bank of India, the country’s largest lender by assets, on Friday posted a record quarterly profit, helped by lower provisions for bad loans, and announced its first dividend in four years.
Net profit rose 80% to Rs 6,451 crore ($883.09 million) for the three months ended March 31, from Rs 3,581 crore a year earlier, SBI said in a regulatory filing. Analysts had expected a profit of Rs 6,147 crore, according to Refinitiv IBES data.
SBI announced a dividend of Rs 4 per share, its first payout since May 2017, when it had rewarded shareholders with Rs 2.6 per share.
The lender reportedly received a windfall of nearly Rs 4,000 crore as part of dues owed by bankrupt steelmaker Bhushan Power and Steel.
Provisions for bad loans slid 16.6% to Rs 9,914 crore.
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.
SBI shares, which had risen about 40% this year by last close, pared some gains after the results, and were last up 0.8% in afternoon trade.