The Covid-19 pandemic has caused big changes in how businesses make money in India and around the world. In India, a company called Reliance Industries used to make the most profit for a long time, but now another company, State Bank of India, is making even more profit.
State Bank of India made more money than Reliance Industries in the recent months from April to June. State Bank of India made about Rs 66,860 crore in the last year, while Reliance Industries made Rs 64,758 crore. Even in just the latest quarter from April to June, State Bank of India made Rs 18,537 crore while Reliance Industries made Rs 16,011 crore. SBI reported record-high earnings in the first quarter of 2023-24. This is thanks to faster credit growth, rising interest rates, and the reversal of past bad loans.
This is only the second time in the past 20 years that State Bank of India has made more profit than Reliance Industries. The last time was in 2011-12 when State Bank of India made Rs 18,810 crore and Reliance Industries made Rs 18,588 crore.
Usually, Reliance Industries competed with other companies like Oil and Natural Gas Corporation and Indian Oil Corporation to be the most profitable in the country.
The decline of RIL and the rise of SBI is a sign of the changing economic landscape in India. The banking, financial services, and insurance (BFSI) sector is now much more profitable than the industrial sector. This is due to a number of factors, including the growth of the Indian economy and the rise of digital banking.
RIL is still a very profitable company, but it is facing increasing competition from newer businesses like SBI. It will need to adapt to the changing economic landscape if it wants to remain the most profitable company in India.
Reliance Industries also saw its profits stay almost the same in the past four years because its newer businesses like retail and telecommunications are not making as much money as its older businesses.
Even though Reliance Industries’ newer businesses are growing, its profits in the latest quarter are similar to what they were two years ago in the same time period.
Conclusion
- RIL’s oil refining and petchem division is its most profitable division. However, the profits from this division have declined in recent years due to the rise of global fuel and petchem prices.
- SBI’s net profit has increased in recent years due to faster credit growth, rising interest rates, and the reversal of past bad loans.
- The BFSI sector is now much more profitable than the industrial sector. This is due to a number of factors, including the growth of the Indian economy and the rise of digital banking.
- RIL is still a very profitable company, but it is facing increasing competition from newer businesses like SBI. It will need to adapt to the changing economic landscape if it wants to remain the most profitable company in India.
