India’s largest bank SBI’s share price fell 2.3% to Rs 579 after the shares turned ex-dividend on Wednesday. The bank announced a dividend payout of Rs 11.3 per share for the fiscal year ended March 2023, which will be disbursed on 14 June. Today is also the record day to determine the shareholders that are eligible for receiving the dividend.
SBI Dividend History
SBI’s dividend payout for the fiscal year 2023 amounted to Rs 11.30 per share, marking a significant increase from the Rs 7.10 per share dividend declared in the previous fiscal year and the Rs 4 per share dividend in FY21. Notably, SBI did not distribute dividends in FY20 and FY19. The highest dividend paid out by SBI clocked in at Rs 15 per share in FY14.
“SBI has reported a solid beat on the earnings front led by lower provisions however on the operational front, numbers missed estimates mainly due to higher opex growth despite strong net income growth. Key Positives: solid NII growth driven by strong loan growth and Margin improvement, net slippages were negative and key negatives was higher opex growth,” said Rahul Malani, Deputy VP – Research, Sharekhan by BNP Paribas.
Stock call: SBI
“We tweak our FY24E/FY25E estimates to factor in stronger loan growth and lower credit costs, partly offset by higher opex; maintain BUY with a revised SOTP-based target price of Rs 732,” said HDFC Securities.
“Uncertain macros notwithstanding, SBIN has delivered strong performance, led by steady business and revenue growth. We believe SBIN will be a strong play on recovery. We expect ~15% ROE by FY25E and assign 1.2x December 2024E P/BV, leading to a core bank value of INR 510. We ascribe a subsidiary value of INR 206, leading to a SOTP-based TP of Rs 717. We reiterate Buy. SBIN is our preferred stock in the PSU basket. Macroeconomic uncertainty is the biggest risk, given its market size and exposure,” Elara Global Research said.