ET Awards for Corporate Excellence: Yonohoo! Being bold & digital's a profitable app
State Bank of India, the country's largest lender with nearly a fifth of the market share, has been a pivoting star, with its fortunes turning around in the past few years and rewarding investors who kept the faith.
From a bleak position of reporting losses, the state-run bank made giant strides to report a net profit of ₹50,232 crore for FY23 under chairman Dinesh Kumar Khara.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Leadership in AIVisitIIM LucknowIIML Chief Executive Officer ProgrammeVisitIIM LucknowIIML Chief Marketing Officer ProgrammeVisit«Thanks to ET for the recognition,» Khara said after SBI was chosen as Company of the Year. «This also gives us the responsibility to meet expectations. Our achievements were possible because of our special focus on loan underwriting and the quality of assets.»
Khara has led SBI in a leap into the digital world as well as retail lending. Besides that, cleaning up the books and a renewed customer focus have led to a 32.2% compounded annual growth rate (CAGR) in its stock price over the past three years.
SBI was once bogged down by bad loans and provisions. All that has changed in the last five years as the success of its digital products, better staff integration and improvements in underwriting have turned the sleepy public sector bank into a profitable behemoth.
Rising credit offtake, a focus on retail, an expanding net interest margin (NIM), improving asset quality and declining bad loan provisioning have helped the bank improve profit manyfold.
NIM, or the difference between the yield earned on loans and that paid on deposits, improved to 3.6% from below 3% in the last five fiscal years, while
