SBI answers all Questions, becomes the Bull for Q1

The market welcomed SBI quarter result with a huge round of applause. The result the banking leader presented has been way better than the market expectation. The street gifted over 8% rise in SBI share price in return.

Although the standalone net profit reported 31.7% drop in Y-o-Y at Rs. 2,520 crores, the Poll had expected the net profit to be Rs 2,475 crore. In the corresponding quarter last year, the value stood at Rs 3,692.43 crore.

The bank reported its gross non-performing assets at 6.94% which the street expected to be over 7%. The company had given its GNPAs at 6.5% in the fourth quarter of FY16. The velocity of rising of NPAs was slower than some of the peer PSU banks, elating the sentiment on the counter. SBI share price rallied over around 9% after the report came in. This was the landmark intraday gain reported by any scrip in one year’s time.

The total provision was reported at Rs. 7,410 crores for this quarter while in the corresponding quarter last financial year it was valued at Rs. 4000 crores. The provisions for bad loans stood at Rs. 6,340 crores in compared to Rs. 3,360 crores in Q1FY16. Provision coverage ratio was reported at 61.57%. The takeaway of the result was that the bank managed to lower its slippages significantly on the sequential basis which stood at Rs 87,904 crore for the quarter. Bank’s prime earning, the Net Interest Income increased 6.4% YoY to Rs 14,612 crore, compared to Rs 13,732 crore in the year-ago quarter.

Currently, SBI share price was trading at Rs. 245.85, a few inched away from its 52 weeks high value. The stock is among top 500 performers of the quarter picked by Dynamic Levels and has been trading near its closest support level. For details on the support and resistance level of the stock, check the SBI share price forecast page of the website.