The State Bank of India (SBI) just dropped a double surprise for its investors, a dividend and a fundraise plan that has the market buzzing. On Saturday, May 3, the PSU heavyweight announced a record-breaking Rs 15.90 dividend per share, a staggering 1,590% on its Rs 1 face value stock, its biggest payout in over 12 years. Apart from this, SBI also plans to raise Rs 25,000 crore in FY26 to power its next phase of growth.
Rs 15.90 per share: A dividend not seen in over a decade
SBI shareholders have reason to smile now. The bank has declared a final dividend of Rs 15.90 for the financial year ended March 2025, with May 16 set as the record date. The payout will hit accounts by May 30. The last time SBI got this was in 2013, with a Rs 41.50 dividend.
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While the dividend is making headlines, SBI’s January-March 2025 earnings showed a mixed bag. The lender’s net profit dipped nearly 10% year-on-year to Rs 18,643 crore as provisions for bad loans surged by 300% to Rs 6,442 crore. But the bigger picture was positive with operating profit grew 8.83% to Rs 31,286 crore, and Net Interest Income (NII) edged up 2.69% to Rs 42,775 crore.
Rs 1 lakh crore club: Full-year performance
Despite Q4 hiccups, FY25 turned out to be a strong year overall for SBI. The bank’s operating profit crossed Rs 1 lakh crore for the first time, reaching Rs 1,10,579 crore, up 17.89% from the previous year. Net profit for the full year stood at Rs 70,901 crore. Gross NPA dropped 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
Furthermore, SBI’s board has approved a capital raise of up to Rs 25,000 crore in FY26 through QIP or FPO routes.
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SBI’s share price was trading down by 1.4% at Rs 788.95 in today’s intraday session. Over the past five days, the stock has declined by 4%. However, on a six-month basis, it has gained around 5%.
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