SBI’s Profit Soars: ₹16 Trillion PAT in 4 Years Under Chairman Dinesh Kumar Khara – More Than the Previous 64 Years Combined

The State Bank of India (SBI) has reported a remarkable profit after tax (PAT) of ₹1.63 trillion in the last four years, which is more than the ₹1.45 trillion PAT it earned over the previous 64 years. This was highlighted by SBI’s chairman, Dinesh Kumar Khara, during a recent Q1 earnings press conference.

Khara, who took over as chairman in October 2020, shared that when he started, the bank’s annual profit was about ₹14,000 crore. This figure has now grown significantly to ₹17,000 crore per quarter.

Khara’s Vision and Achievements

Khara’s goal was to see SBI achieve a PAT of ₹1 trillion. In the last financial year (FY24), the bank was close to ₹80,000 crore, and Khara believes that they are on track to reach the ₹1 trillion mark in FY25.

The significant boost in SBI’s profitability is due to resolving lending issues, increasing other income sources, and improving employee productivity. Over the past four years, the business per employee has grown from ₹24 crore to around ₹38 crore, while profit per employee has increased nearly six times to ₹30 lakh.

Despite these achievements, Khara expressed disappointment with the market’s valuation of SBI. He believes the bank is undervalued, especially considering its vast network of over 22,000 branches, strong brand presence, substantial balance sheet, and comfortable liquidity buffers.

Comparative Metrics and Future Plans

Khara pointed out that the average balance in SBI’s savings accounts is three times higher than its closest competitor, rising from ₹12 trillion in March 2020 to around ₹17 trillion in June.

Regarding the bank’s digital initiatives, Khara mentioned that SBI is working on a new version of its mobile banking app, YONO 2.0. The updated app will be released incrementally, starting with a beta version for testing. He added that even the current YONO app has received positive feedback and is performing well.