As Dinesh Kumar Khara prepares to retire as the Chairman of the State Bank of India (SBI) later this month, it’s a great time to reflect on the remarkable achievements during his time at the helm. Over the past four years, Khara has led SBI through a period of extraordinary growth and financial success. The Financial Services Institutions Bureau (FSIB) has recommended Challa Sreenivasulu Setty, as the next chairman of SBI.
Financial Achievements Under Khara’s Leadership
During Khara’s tenure, SBI has seen net profits soar to an impressive Rs 1.63 lakh crore. To put this in perspective, this figure surpasses the total net profits of the bank from the previous 64 years, which stood at Rs 1.45 lakh crore. When Khara first took over, the bank’s annual profit was Rs 14,000 crore. Now, it has grown significantly to Rs 17,000 crore per quarter.
This surge in profitability has also led to a dramatic increase in productivity. The profit per employee has skyrocketed nearly sixfold, reaching Rs 30 lakh. This is a clear indicator of how efficiently the bank has been operating and the effectiveness of Khara’s leadership.
Market Recognition and Challenges
Despite these impressive numbers, Khara has expressed frustration with how the market values the bank’s achievements. SBI’s market capitalization has risen from Rs 0.84 lakh crore to Rs 1.92 lakh crore in the past five years, but Khara feels that this doesn’t fully reflect the bank’s success. He candidly admitted, “I am not happy. How can I be happy? We are not getting our right value, look at the other players in the market.” Khara’s concern highlights a broader issue of market perception versus actual performance. Even with strong financial results, the bank’s market value hasn’t always matched its achievements.
As of August 2024 State Bank of India has a market cap of ₹7.566 Trillion.
| Year | Market cap |
|---|---|
| 2024 | ₹7.566 T |
| 2023 | ₹5.735 T |
| 2022 | ₹5.477 T |
| 2021 | ₹4.109 T |
| 2020 | ₹2.453 T |
| 2019 | ₹2.978 T |
| 2018 | ₹2.640 T |
| 2017 | ₹2.666 T |
| 2016 | ₹1.942 T |
| 2015 | ₹1.675 T |
| 2014 | ₹2.328 T |
| 2013 | ₹1.208 T |
| 2012 | ₹1.600 T |
| 2011 | ₹1.026 T |
| 2010 | ₹1.785 T |
| 2009 | ₹1.440 T |
| 2008 | ₹813.83 B |
| 2007 | ₹1.247 T |
A Strong Foundation for the Future
Looking ahead, Khara is optimistic about SBI’s future. He assured that his successor won’t need to worry about major increases in provisions, thanks to a solid balance sheet prepared by the managing directors. Khara is confident that SBI will continue to thrive, aiming for over 16% profit growth in the financial year 2025, with a target profit after tax of Rs 1 lakh crore.
SBI’s strengths are considerable. With over 22,000 branches, a robust brand presence, and significant liquidity reserves, the bank is well-positioned for continued success. Additionally, the average savings account balance has seen a substantial increase, climbing to Rs 17 lakh crore by June 2024, up from Rs 12 lakh crore in March 2020.
SBI Financial Results June 2024
State Bank of India (SBI) announced a 0.89 per cent rise in the net profits at ₹17,035.16 crore for the April to June quarter of the financial year 2024-25. The largest public sector bank has also announced the approval of fundraising through bonds in the first quarter results. The bank aims to raise upto ₹25,000 crore from Indian and foreign investors in the financial year 2024-25. Click here to Check net profit all banks in June 2024 Quarter.
Looking Forward
As Khara steps down, he remains hopeful that SBI’s true potential will eventually be recognized in the market. Despite his current dissatisfaction with the bank’s market value, he believes that the foundation laid during his tenure will set the stage for future successes.
Khara’s leadership has undeniably left a significant mark on SBI, and his contributions will likely continue to benefit the bank long after his retirement.
If the SBI Chairman isn’t happy, it’s likely that the whole organization will feel the impact. If he’s not satisfied with the market value, it’s probably going to affect everyone’s mood and motivation.”
Work on all Holidays for 17hrs, forgot family, food and Sleep, Maybe then he will be Happy. He is a passing cloud and such a irresponsible remarks. SBI should better look for someone else.