SBI replaces Reliance to become India’s most profitable company

New Delhi: It is not often that another Indian company gets to pip Reliance in the profitability sweepstakes. But, in the June 2023 quarter (Q1FY24), the State Bank of India (SBI) has reported higher profits than Reliance Industries.

For the quarter, Q1FY24, Reliance had reported net profits of Rs 16,011 crore while SBI had reported net profits of Rs 18,537 crore, a full 15.8 per cent higher than the profits reported by Reliance Industries.

It is not just the latest quarter. Even if you look at the four rolling quarters from September 2022 to June 2023, then Reliance Industries has reported net profits of Rs 64,758 crore while the 4 quarter rolling net profits of SBI is 3.25 per cent higher at Rs 66,860 crore, the report said.

Incidentally, this is the first time in more than a decade that SBI has reported higher profits than Reliance Industries in 4 rolling quarters combined, the report said.

The last time it happened was way back in the fiscal year 2011-12. Just about 3-4 years back, PSU banks were struggling with tepid growth in top line, high levels of NPAs and low capital adequacy. Things have changed drastically in the last few years.

Multiple rounds of capital infusion by the government have helped to better capitalize the public sector banks.

Image courtesy of HBL

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