India’s largest lender, the State Bank of India (SBI), has just given shareholders a big reason to cheer. The bank has declared a record dividend of Rs 15.90 per share, the highest in over a decade. This major announcement, combined with plans to raise Rs 25,000 crore in FY26, signals SBI’s strong growth ambitions ahead. Investors and traders are now closely watching how this move could impact market sentiment and long-term value.
Rs 15.90 Dividend: SBI’s Generous Gift to Investors
For FY25, SBI declared a final dividend of Rs 15.90 per share on its Rs 1 face value stock. That’s a jaw-dropping 1,590% payout—unseen since 2013. The record date is May 16, and investors will receive the dividend by May 30.
In Indian stock market history, such hefty payouts are rare for PSU banks. This move highlights SBI’s confidence in its financial stability and commitment to rewarding shareholders. It also adds a positive sentiment in the broader banking sector.
Mixed Q4 Performance but Strong Full-Year Results
While the dividend news shines bright, the bank’s Q4 results were a mixed bag. SBI’s net profit fell by 10% YoY to Rs 18,643 crore, as provisions for bad loans surged over 300% to Rs 6,442 crore.
However, there’s still a silver lining. Operating profit for the quarter rose by 8.83% to Rs 31,286 crore, while Net Interest Income (NII) edged up by 2.69%. These numbers reflect the bank’s resilience in a challenging macro environment.
Despite a weak Q4, FY25 was a milestone year for SBI. The bank’s operating profit hit Rs 1,10,579 crore, marking a growth of 17.89% YoY. Full-year net profit stood at Rs 70,901 crore.
Capital Raise of Rs 25,000 Crore in FY26: What It Means
To fund future expansion and maintain capital adequacy, SBI’s board approved a capital raise of Rs 25,000 crore via QIP or FPO in FY26. This fundraise is crucial to meet growing credit demand and support digital infrastructure upgrades.
Such moves show that SBI is gearing up for aggressive growth—both in retail and corporate lending.
SBI Share Performance: Should Investors Worry?
Currently, SBI’s stock is trading at Rs 788.95, down 1.4% intraday. Over the past week, it dropped 4%. But in the last six months, it gained 5%. The one-year return is slightly negative at -2%.
However, with a market cap of Rs 7.03 lakh crore, SBI remains a key player. Its long-term prospects, especially after this dividend and capital raise, look strong for value-focused investors.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
