SBI Share Price: State Bank of India (SBI) — the country’s largest lender by assets — started trading ex-dividend on May 31. The bank had announced a dividend of Rs 11.30 per share for FY23, along with its March quarter results. The dividend will be paid on June 14.
Informing Indian bourses about the final dividend, SBI said, “pursuant to Regulation 43 and Regulation 30 (6), we advise that the Central Board of the Bank, at its Meeting held on 18th May, 2023, has declared a Dividend of Rs. 11.30 per equity share (1130%) for the financial year ended 31st March, 2023. The date of payment of Dividend is fixed on 14th June, 2023 and the dividend warrants will be dispatched before the date of payment, which will be payable, in India, at par at all branches of State Bank of India, irrespective of the amount.”
On the dividend record date, SBI said, “Pursuant to Clause (a) of sub regulation (1) and sub-regulations 2 & 5 of Regulation 42 of SEBI LODR, 2015 and other applicable provisions, we inform that the Register of Shareholders of State Bank of India will be closed for transfer of shares, in view of payment of dividend, for the Financial Year 2022 – 23, from 01.06.2023 (Thursday) to 05.06.2023 (Monday), the record date being 31.05.2023 (Wednesday). The Central Board of the Bank has declared dividend for the Financial Year 2022 – 23 at its Meeting held on 18th May, 2023.”
SBI Share Price History
SBI share price on Tuesday closed at ₹592.95 apiece levels, losing near ₹2 per share on NSE. SBI shares have been in uptrend after bottoming out at ₹505 apiece levels in March 2023, delivering to the tune of 37 per cent in last two months.
SBI Dividend History
SBI’s dividend for FY23 totalled Rs 11.30 per share, which was against Rs 7.10 per share dividend it announced for FY22 and Rs 4 per share for FY21. SBI did not announce dividends in FY20 and FY19. As per corporate database AceEquity, dividend in FY22 amounted to Rs 6,336.47 crore and to Rs 3,569.84 crore in FY21. SBI’s dividend yield stood at 1.91 per cent on Tuesday against 1.44 per cent for FY22 and 1.10 per cent for FY21, as per AceEquity.
State Bank of India reported a standalone net profit of Rs 16,694.5 crore for the quarter ended March, beating analysts’ estimates by a huge margin. SBI’s net profit grew 83.2 per cent compared with the corresponding period a year ago. SBI’s net interest margin (NIM) came in at 3.84 per cent, better than 3.69 per cent for the previous three months as well as 3.4 per cent for the quarter ended March 2022. Also better than Zee Business analysts’ estimate of 3.6 per cent.
What do Analysts Say?
Prabhudas Lilladher said while SBI saw a mixed quarter, the management sounded confident about maintaining core profitability driven by stronger underwriting, lower net slippages, multi-year low GNPAs and healthy standard asset provision cushion of 80 bps which could more than suffice for ECL impact. This brokerage has increased the target price for the stock to Rs 770 from Rs 730 earlier.
BofA Securities maintained a buy rating on SBI with a target price of Rs 1030. The spending outlook remains strong. Travel spending remains healthy with overseas spending yet to fully normalize.
Some moderation was seen in fuel, departmental store, and grocery spending post Rs 2,000 notes withdrawal by the Reserve Bank of India (RBI).
The focus remains on maintaining and improving retail spending market share.
Credit costs are likely to stay elevated in Q1 with continued clean-up of vulnerable vintage accounts. Credit card integration with UPI should act as a further growth acceleration.
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