Shares of State Bank of India Ltd. (SBI), India's largest lender are trading ex-dividend from today's trading session. The stock appears to have fallen as much as 2.3 percent, but that is due to adjusting for the price of the dividend. SBI had declared a dividend of Rs 11.3 per share for financial year 2023 during its March quarter results.

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The ex-dividend date for a stock is the date at which it begins trading without the benefit of the next dividend payment for new shareholders. This means that dividend payments will no longer be paid to investors who purchase a stock on this day.

Payment date of the dividend has been fixed as June 14, 2023 and the dividend warrants will be dispatched before the date of payment, which will be payable, in India, at par at all branches of State Bank of India, irrespective of the amount,” SBI had said.

Before this dividend, SBI had announced a dividend of Rs 7.10 per share in financial year 2022 and Rs 4 per share in financial year 2021.

Earlier this month, SBI posted its highest-ever quarterly profit led by healthy loan growth, better fees and lower credit costs for the quarter ended March 2023.

After the earnings, HDFC Securities maintained its ‘Buy’ rating on SBI with a revised price target of Rs 732. “We tweak our FY24E/FY25E estimates to factor in stronger loan growth and lower credit costs, partly offset by higher operating expenditure,” the note said.

Shares of SBI are trading 1.5 percent lower at Rs 583.75.

First Published:May 31, 2023 11:47 AM IST