India’s largest public sector bank, the State Bank of India (SBI), made headlines on May 3, 2025, by announcing a significant dividend for its shareholders. This decision, revealed through an exchange filing, reflects the bank’s financial performance for the fiscal year ending in 2024-25. SBI declared a dividend of ₹15.90 per equity share, emphasizing its commitment to returning value to its investors.

SBI Declares Impressive Dividend

During its recent board meeting, SBI’s Central Board approved a remarkable dividend payout of 1590% on its equity shares, which have a face value of Re 1 each. This translates to an attractive ₹15.90 dividend for every share held by eligible shareholders, showcasing the bank’s strong financial position.

• Record Date: SBI has set May 16, 2025, as the record date to determine the shareholders eligible for this dividend payout.
• Payment Date: The dividend will be disbursed on May 30, 2025.

This announcement is pivotal, especially in light of SBI’s recent quarterly performance, where the bank reported a 10% decline in net profits to ₹18,643 crore.

SBI’s Stock Performance

Following the dividend announcement, SBI’s share price saw an increase of 1.51%, closing at ₹800.05. This marks a notable rise from ₹788.15 during the same period last year. Over the last five years, investors have enjoyed a staggering 380% return on their investments in SBI. However, the stock has experienced a slight dip of 0.99% over the past year.

Year-to-Date Analysis

• 2025 YTD Gain: 0.83%
• One-Month Gain: 4.22%

Despite these gains, SBI’s shares are currently trading below their year-high levels, which hit ₹912.10 on June 3, 2024. The stock’s 52-week low was recorded at ₹679.64 on March 3, 2025, according to BSE data.

Q4 Results Overview

In its fourth quarter results, SBI’s standalone net profit fell nearly 10%, down from ₹20,698 crore to ₹18,643 crore compared to the same period last year. A noteworthy aspect of this quarter was the 300% increase in provisions for bad loans, which surged to ₹6,442 crore from ₹1,610 crore year-on-year.

• Gross NPA Rate: Despite the rise in provisions, the bank managed to reduce its gross Non-Performing Assets (NPAs) by 42 basis points, bringing it down to 1.82% compared to 2.24% a year ago.

The increase in provisions indicates a proactive approach by SBI to manage its lending risks amid economic fluctuations. As the bank continues to navigate the challenging financial landscape, its dividend declaration and strategic measures to enhance asset quality remain focal points for investors.

For those considering investing in SBI, these developments present a unique opportunity to engage with one of India’s most significant financial institutions.