State Bank of India, the country’s largest lender, has achieved a significant milestone by becoming the second-most profitable firm in India, just behind Reliance Industries. With an impressive 41 percent compounded growth in earnings over the past three years, the state-owned bank reported a remarkable 57 percent year-on-year increase in net profit to Rs 55,648 crore for the fiscal year 2022-2023. This exceptional performance can be attributed to higher net interest income and reduced provisions.
It is noteworthy that, apart from Reliance Industries, no other Indian company has ever surpassed the Rs 50,000 crore profitability mark. Reliance Industries recorded a net profit of Rs 66,702 crore, while HDFC Bank, the third-highest profitable firm, posted a net profit of Rs 45,997 crore for the fiscal year that ended in March.
The upcoming announcement of ONGC’s Q4 results on May 29 is highly anticipated, with Bloomberg consensus estimates projecting a net profit of approximately Rs 48,000 crore. These developments reflect the impressive financial performance of key players in the Indian market, demonstrating their resilience and strong positioning in the industry.
Reflecting on the results, Chairman of SBI, Dinesh Kumar Khara, expressed satisfaction with the robust credit growth witnessed across various segments. He highlighted the bank’s strong performance of foreign offices and the consistent improvement in asset quality over the years. Khara added and said “Gross NPA ratio is the lowest level we have seen in over the last 10 years,”. The gross Non-Performing Assets (NPA) ratio of the bank has declined to 2.78 percent as of March 2023, marking a decrease from 3.14 percent reported in the previous quarter.
According to Bloomberg data, Reliance Industries Limited (RIL) has maintained its top position in terms of profitability since FY16. However, the rankings for the next three most profitable companies, namely TCS, HDFC Bank, SBI, ONGC, and IOC, have witnessed reshuffling over the years.
State Bank of India’s shares have experienced a remarkable performance on the stock market since 2021. During this period, the stock price of SBI has more than doubled, surpassing the approximately 30 percent gains achieved by the benchmark Nifty50 index.
India’s Most Profitable Companies
Name of Company
1. Reliance Industries Ltd
2. State Bank of India (SBI)
3. HDFC Bank Ltd
4. Tata Consultancy Services (TCS)
5. ICICI Bank Ltd
6. Coal India Ltd
7. HDFC Ltd
8. Infosys Ltd
9. ITC Ltd
10. Kotak Mahindra Bank
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