SBI’s 4-Year Profits Surpass 64 Years; Stock Underpriced: Chairman Khara
SBI’s profits in the last 4 years exceed the previous 64 years, yet its stock remains undervalued, says Chairman Dinesh Khara.
Outgoing SBI Chairman Dinesh Kumar Khar.
Outgoing SBI Chairman Dinesh Kumar Khara revealed that the bank’s net profits over the last four years have exceeded the total profits of the previous 64 years.
Khara emphasised that although SBI has a wide branch network and a strong financial standing, these advantages are not completely shown in the bank's market value.
In the last four years, SBI has generated a net profit of Rs 1.63 lakh crore, which is more than the Rs 1.45 lakh crore accumulated over the previous 64 years.
Annual profits have risen from Rs 14,000 crore at the start of his term to Rs 17,000 crore per quarter. Profit per employee has increased nearly sixfold to Rs 30 lakh.
Khara expects the bank to achieve a profit after tax (PAT) of Rs 1 lakh crore in FY25.
He assured that the incoming chairman will not impact profits through higher provisions, as the balance sheet has been prepared collaboratively.
Khara expressed dissatisfaction with SBI’s market valuation, even though its market capitalisation has grown from Rs 0.84 lakh crore to Rs 1.92 lakh crore in five years.
He highlighted the bank’s strengths, noting that average savings account balances have increased to Rs 17 lakh crore as of June 2024.
