The State Bank of India (SBI) ‘s market capitalisation crossed the ₹8 lakh crore mark on Monday after the bank’s shares surged to a record high of ₹907.
SBI is now the third-largest bank in India by market cap, very close to ICICI Bank which is second largest. The bank’s market cap milestone was reached as shares rose over 9 per cent during a rally in the stock market, hitting an all-time high of ₹909. Notably, SBI’s shares have increased by more than 50 per cent in the last six months.
Finance Minister Nirmala Sitharaman has recently posted on social media that India’s banking sector has achieved a significant milestone by recording its highest-ever net profit, exceeding ₹3 lakh crore.
She also emphasised that the government will take decisive steps to strengthen the banking sector further. Insolvency and Bankruptcy Code introduced by the government has improved the financial conditions of Indian banks, with a recovery of ₹10 lakh crore of bad loans.”
Between 2014 and 2023, banks recovered more than ₹10 lakh crore from bad loans,” she said.
The Nifty Bank index also surged to a record high on Monday, crossing the 50,000 mark for the first time.
The Nifty index touched a new high of 50,990, with all banking stocks in the index trading with gains at the time of filing this report
.In the recently released quarterly results, the State Bank of India has reported a standalone net profit of ₹20,698.35 crore, which was 24 per cent up year-on-year (Y-o-Y), on the back of higher interest income and low provisions.
Domestic advances have grown by 16.26 per cent, and corporate advances and agriculture advances have grown by ₹11 lakh crore and ₹3 lakh crore, respectively. (YoY)Foreign Offices’ advances grew by 9.47 per cent, while retail, personal advances and corporate loans registered YoY growth of 14.68 per cent and 16.17 per cent, respectively. Bank deposits grew at 11.13 per cent (YoY), out of which CASA Deposits grew by 4.25 per cent YoY. CASA ratio stands at 41.11 per cent as of 31st March 2024The impressive performance of SBI and the overall banking sector highlights investor confidence and the positive outlook for India’s banking sector
The recovery of bad loans and the government’s supportive measures have played crucial roles in strengthening the financial stability of banks, contributing to their recent achievements in market capitalisation and net profit.