Will SBI snatch the most India's profitable firm tag from HDFC Bank? - ET BFSI (2024)

• Banking
• 1 min read

The ongoing financial year's race for the most profitable company is anticipated to be closely monitored by analysts with HDFC Bank edging past State Bank of India to emerge as the most profitable company during the initial nine months of the current fiscal year, with a net profit of Rs 44,300 crore

SBI reported a robust profit of Rs 40,378 crore, securing the second position in the profit rankings, while IOC was third with a net profit of Rs 34,781 crore during the same period.

HDFC Bank's ascent to the top can be attributed to its strategic merger with mortgage lender HDFC, effective from July 1 last year. The consolidation has evidently bolstered the bank's financial position.

SBI provisions

However, SBI's net profit in the third quarter faced the impact of higher provisions for wages and pension liabilities. The bank allocated Rs 12,000 crore for wage hikes and an additional Rs 7,100 crore for one-off pension liabilities, amounting to a total provision of around Rs 20,000 crore.

In the previous fiscal (FY23), SBI was the most profitable company with a net profit of Rs 50,232 crore. Reliance Industries and HDFC Bank secured the second and third positions.

Despite HDFC Bank's current lead, experts expect SBI to retain the title, especially given the traditionally strong performance of banks in the fourth quarter, supported by heightened credit demand during this period. The competition among top companies for fiscal supremacy promises to be a compelling narrative in the financial landscape.

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETBFSI App

• Get Realtime updates
• Save your favourite articles

Scan to download App