State Bank of India (SBIN).
1. Key Company Fundamentals
State Bank of India (SBI) is India’s largest public sector bank, commanding a dominant ~22% market share in deposits and nearly ~20% in advances nationwide. Its financial health has significantly strengthened, marked by an multi-year high recovery in asset quality and healthy loan book credit growth.
Asset Quality Metrics
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Gross NPA: 1.49%
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Net NPA: 0.39% (Indicative of highly resilient provisioning and asset cleanup over the last few years)
2. Dividend Details & Policy
SBI rewards shareholders via a steady annual cash payout. The bank has progressively increased its absolute dividend payout year-on-year, backed by surging net profits.
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Dividend Yield: ~1.66% to 1.68%
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Dividend Frequency: Annual (Declared once a year in May alongside annual financial audit results).
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Payout Ratio: Consistently maintains a healthy dividend payout of around 18–19% of its net earnings.
Recent Dividend Payout History
SBI handles its dividend payouts according to the performance of the concluded financial year.
3. Financial Performance Summary
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Profitability: Annual net profit crossed ₹83,000 crores, driven by a 17% expansion in loan segments including retail, corporate, and emerging sectors like data centers and renewables.
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Valuation & Growth: Digital transformation fueled by its YONO application (~75+ million users) continues to decrease acquisition costs, making its historical valuation (~1.1x core book value forward) attractive to long-term institutional buyers.