Why SBI Shares Close 6% Higher After Q2 Net Profit:
Five Things You Should Know
The
State Bank of India's (SBI) shares rose nearly 8% before closing
at Rs. 333.20, 6.2% higher on BSE against the previous session's
closing of Rs. 313.70 soon after the lender declared its Q2 results.
SBI's
digital transactions rose 10% in Q2
The State Bank of India's (SBI) shares rose nearly
8% before closing at Rs. 333.20, 6.2% higher on BSE against the
previous session's closing of Rs. 313.70 soon after the lender
declared its Q2 results. The SBI reported a second-quarter (Q2) profit
compared with a loss year ago, and a sequential improvement in its bad-loan
ratio, sending its shares higher. Net profit came in at Rs. 1,582
crore ($243.25 million) for the quarter ended September 30, lower than
analysts' estimates of Rs. 2,696 crore, but compared with a net loss
of Rs. 557 crore a year earlier.
SBI maintains its leadership position in debit card
spends with 31% market share. SBI, which accounts for more than a fifth of
India's banking assets, said gross bad loans as a percentage of total loans
fell to 9.83 per cent at the end of September from 9.97 per cent three months
earlier.
Five Things that you should know about State Bank
of India's (SBI) Q2 results
1. Net interest
income rose nearly 3 per cent from a year earlier to Rs. 18,586
crore, while total provisions including for bad loans rose almost 27 per cent
to Rs. 18,418 crore.
2. Net Profit in
September quarter and Rs. 3,587 Crore in first half of 2018 fiscal
was higher by 383.83% and 2061% YoY respectively.
3. Operating profit
excluding exceptional and one-time items soared by 11.40% year on year in the
second half of 2018 fiscal
4. Casa (current
account savings account) ratio rose 3.98% year on year to 44.88% while deposits
grew by 10.27% year on year from Rs. 23, 78, 956 crore
to Rs. 26, 23, 180 crore.
5. Gross non
performing assets (NPA) declined by 14 basis points to 9.83% and net NPA
declined by 54 basis points. 78% of total transactions took place via alternate
channels. Share of digital transactions rose by over 1,000 bps as on September
2017 from September 2016
https://www.ndtv.com/business/why-sbi-shares-soared-nearly-8-after-q2-results-five-things-you-should-know-1773780
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