New Delhi, June, 2025 — The State Bank of India (SBI) has paid a dividend of ₹8,076.84 crore to the Government of India for the financial year 2024–25, reflecting its continued strong financial performance. The dividend cheque was formally handed over to Union Finance Minister Nirmala Sitharaman by SBI Chairman C.S. Setty on Monday. Finance Secretary Ajay Seth and Financial Services Secretary M. Nagaraju were also present at the event.
This year’s dividend marks a notable increase from the ₹6,959 crore paid in the previous fiscal. The bank declared a dividend of ₹15.90 per share for FY25, up from ₹13.70 per share in FY24. The government, which owns a 57.43% stake in SBI, remains the largest shareholder.
Robust Annual Performance Despite Q4 Profit Dip
Despite a dip in fourth-quarter earnings, SBI posted a strong performance for the full financial year. The bank’s net profit rose 16% year-on-year to ₹70,901 crore in FY25, up from ₹61,077 crore in FY24.
However, net profit for the January–March quarter (Q4 FY25) declined 10% to ₹18,642.59 crore, mainly due to a sharp increase in provisions, which climbed to ₹6,442 crore from ₹1,608 crore a year earlier.
Net interest income (NII) for Q4 grew 2.7% to ₹42,774.63 crore, while the net interest margin saw a slight improvement, indicating stability in the bank’s core lending operations.
Improving Asset Quality Metrics
SBI continued to strengthen its asset quality in Q4. The gross non-performing asset (NPA) ratio improved to 1.82% from 2.07% in the previous quarter, while the net NPA ratio declined to 0.47% from 0.53%.
The provision coverage ratio increased to 92.08%, up 19 basis points, and the slippage ratio fell to 0.55%, indicating better control over fresh bad loans.
Dividend Boost to Government Revenues
The higher dividend reflects SBI’s strong capital position and commitment to shareholder returns, while also giving a significant boost to the government’s non-tax revenue. Despite near-term profit pressure from higher provisioning, the bank’s strong fundamentals and asset quality gains reaffirm its status as India’s largest and most profitable lender.
