💥 records Rs 15.90 dividend, raise Rs 25,000 crore fund! Hear it all here! 💥
State-owned bank State Bank of India declares significant dividend, distributing Rs 15.90 per share; aims to secure additional funds totaling Rs 25,000 crore after 12 years' hiatus.
Yo, folks! The State Bank of India (SBI) is making some serious waves in the market with a helluva surprise for its investors. On May 3rd, SBI dropped a record-breaking Rs 15.90 dividend per share, that's right, a staggering 1,590% on its humble Rs 1-faced stock! This bad boy is 🚨the biggest payout in over 12 years🚨. Ca-ching, baby! But that ain't all, SBI is also planning to raise a cool Rs 25,000 crore in FY26 to power its next phase of expansion. Let's dive deeper into this all-important news!
💸 Rs 15.90 per share: Dividend comeback after a decade 💸
Smile, SBI shareholders! The bank has declared a final dividend of Rs 15.90 for the financial year ending March 2025. Save the date, May 16th, 'cause that's the record date. Bank accounts will be credited with the dividend by May 30th. SBI's last big payout? That happened in 2013 with a Rs 41.50 dividend.
📊 Q4 Results 2025: Mixed bag of earnings 📊
While the dividend is making all the headlines, let's quickly look at SBI's earnings performance for Q4 2025. The lender's net profit slipped by almost 10% YoY to Rs 18,643 crore owing to a surge in provisions for bad loans by 300% to Rs 6,442 crore. But the big picture looks positive, with operating profit growing by 8.83% to Rs 31,286 crore, and Net Interest Income (NII) edging up 2.69% to Rs 42,775 crore.
🔎 FY25: Strong overall performance 🔎
Despite the Q4 dip, FY25 turned out to be a rather great year for SBI overall. For the first time ever, SBI's operating profit surpassed the Rs 1 lakh crore mark, reaching Rs 1,10,579 crore, up 17.89% from the previous year. The full-year net profit stood at Rs 70,901 crore. Gross NPAs tumbled 8.78% YoY to Rs 76,880 crore, and the Gross NPA ratio improved to 1.82%.
🌟 Capital raise of up to Rs 25,000 crore in FY26 🌟
Oh, and in even more exciting news, SBI's board has approved a capital raise of up to Rs 25,000 crore in FY26 through QIP or FPO routes. It looks like SBI is gearing up to take on the world, one expansion at a time.
📈 SBI share performance 📈
As of today, SBI's share price is sliding by 1.4% to Rs 788.95 in the intraday session, marking a 4% decline over the past five days. However, over a six-month period, it has gained around 5%, and on a one-year basis, it's down 2%, while on a YTD basis, it has seen a marginal decline of 0.5%. SBI's market cap currently stands at a colossal Rs 7.03 lakh crore. Its 52-week high stands at Rs 912, while the 52-week low is Rs 680 per share.
💭 Behind the Record Dividend and Capital-raising Plans 💭
- Strong Financial Performance and Capital Distribution: Although SBI's net profit dipped due to increased provisions for bad loans, the bank's operating profit and Net Interest Income (NII) showed positive growth. This mixed financial performance suggests that SBI has excess capital that can be distributed through dividends.
- Investor Confidence and Financial Health: The substantial dividend announcement signals confidence in SBI's financial health and future prospects, reassuring investors about the bank's robust financial position.
- Regulatory Requirements and Shareholder Value: Banks like SBI may have accumulated more capital than required. Dividing part of it aligns with regulatory compliance while enhancing shareholder value.
💡 Strategic Investments and Expansion 💡
The additional capital raised can be used for strategic investments in emerging segments like digital banking, fintech partnerships, and corporate lending, which are crucial for sustainable growth in the banking sector. SBI's aspirations run deep, and it sees Rs 25,000 crore as the fuel for driving its next phase of growth, enhancing market presence, and ensuring regulatory compliance.
- Following the announcement of a record-breaking Rs 15.90 dividend per share, shareholders of the State Bank of India (SBI) can anticipate a significant payout, marking the biggest payout in over 12 years.
- As SBI prepares to raise a colossal Rs 25,000 crore in FY26, it is gearing up to expand its business operations further, exploring emerging segments such as digital banking, fintech partnerships, and corporate lending.
- The substantial dividend and capital-raising plans by SBI underscore its strong financial performance, capital distribution, investor confidence, and financial health, signaling the bank's robust financial position and future prospects.
- SBI's strategic investments and expansion, financed by the capital raised, aim to drive growth in the banking sector, increase market presence, and ensure regulatory compliance, positioning the bank for long-term business success.
- In the realm of finance and investing, the rise of Decentralized Finance (DeFi) may challenge traditional players like SBI, disrupting current trading, investment, and portfolio management practices, but also opening up new opportunities for collaboration and innovation in the finance industry.
