Rs 15.90 Dividend Drops Like A Bombshell, But SBI's Core Weakens With Boring Balance Sheet; Your Trade Setup?

State Bank of India (SBI) shares fell more than 2% on Monday after the company's earnings were somewhat off the mark, particularly when compared to private banks like HDFC Bank and ICICI Bank that had previously released excellent results. SBI's shares fell 2% to Rs 783.65 during Monday's early trading on BSE, while they fell 2.25% to Rs 782 on the NSE. The consolidated net profit of SBI Bank for the January-March quarter plunged by 8.34% to Rs 19,600 crore from Rs 21,384 crore in Q4FY24, according to the bank's statement released on Saturday.

SBI Dividend

For the fiscal year that ended on March 31, 2025, the SBI Board of Directors announced a dividend of Rs 15.90 per equity share of Rs 1/-each fully paid up (i.e., 1590%). This dividend payout is the highest ever declared by SBI so far.

"The record date for determining the eligibility of members entitled to receive dividend on equity shares is Friday, 16.05.2025 and in terms of Regulation 10(1) of the State Bank of India General Regulations, 1955 the register of members of State Bank of India will be closed in view of payment of dividend, for the financial year 2024-25, from 17.05.2025 (Saturday) to 19.05.2025 (Monday) (both days inclusive). The dividend payment date is fixed as 30.05.2025," SBI informed stock exchanges on Saturday.

SBI Q4 Results

On a standalone basis, the lender's net profit dropped from Rs 20,698 crore in the same period last year to Rs 18,642 crore in Q4FY25. While PAT was at 18643 Cr, more than estimated by Mr. Gaurav Goel, (Entrepreneur and SEBI Registered Investment Advisor), the growth came largely because of other income, mostly from forex and treasury gains. NII was higher at 42775 Cr vs estimates of 42464 Cr. ROA at 0.68% vs 1.94% QoQ and ROE at 19.9% vs 21.5% QoQ, NII growth rate at 2.7% YoY- lowest in 5 years and loan growth rate at 12% YoY- lowest in 3 years, was not great news for the market watchers.

While the bank's net income on a consolidated basis climbed to Rs 1,79,562 crore in the last quarter of FY 2024-25 (FY25) from Rs 1,64,914 crore in the same time the previous year, its core net interest income increased 2.69 percent to Rs 42,775 crore. The bank's NIM fell to 3.15 percent, a 32 basis point year-on-year fall. The balance sheet of State Bank of India's (SBI) Q4 FY25 figures, which were released on May 3, 2025, appears uninteresting. For FY25, stable loan growth was 12.03%, sliding margins with the NIM dropped to 3.15%, and loan loss provisions grew by 20.35%.

"SBI results were a little off the line, especially in comparison to Private Banks like HDFC Bank and ICICI Bank who had declared sterling results earlier. Despite not-so-encouraging results from SBI this quarter, we remain bullish on SBI overthe long time. Most of the structural issues with SBI have been largely addressed and the positive momentum in the economy. Lower interest rates and attractive valuations make it an attractive stock to keep in the portfolio," said Gaurav Goel.

"SBI have declared good results, but it's mainly due to other income like investments/treasury/fee income. Loan Book Growth Moderated To 12% YOY From 14% a couple of Quarters Ago. NIIM is stable and the silver lining is that NPAs are under control," commented Vinod Jhaveri Independent Analyst at Pure Technicals.

SBI Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "SBIN (State Bank of India) has recently given a breakout and successful retest of an inverted Head and Shoulders pattern on the daily chart, indicating a strong bullish structure. The stock is currently taking support near the ₹785 level, which aligns with the neckline of the pattern - a critical zone that confirms the breakout strength. A sustained close above ₹800 could trigger a fresh upward move, with potential short-term targets of ₹840 and ₹860."

"The immediate support zone is seen around ₹770, which coincides with the convergence of the 50, 100, and 200 EMAs - making it a strong area for accumulation on dips. Overall, SBIN maintains a bullish trend structure, and any pullback toward support levels should be seen as a buying opportunity. A prudent stop-loss for fresh long positions can be placed near ₹760," Mandar Bhojane further added.

"SBIN (State Bank of India) has recently given a breakout and successful retest of an inverted Head and Shoulders pattern on the daily chart, indicating a strong bullish structure. The stock is currently taking support near the ₹785 level, which aligns with the neckline of the pattern - a critical zone that confirms the breakout strength. A sustained close above ₹800 could trigger a fresh upward move, with potential short-term targets of ₹840 and ₹860," commented Gaurav Goel, (Entrepreneur and SEBI Registered Investment Advisor).

"The immediate support zone is seen around ₹770, which coincides with the convergence of the 50, 100, and 200 EMAs - making it a strong area for accumulation on dips. Overall, SBIN maintains a bullish trend structure, and any pullback toward support levels should be seen as a buying opportunity. A prudent stop-loss for fresh long positions can be placed near ₹760," he further added.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.