InvestorQ : How did you find the results of SBI announced on Wednesday? How do you see the stock price moving?
ishika Banerjee made post

How did you find the results of SBI announced on Wednesday? How do you see the stock price moving?

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1 month ago
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State Bank of India reported 6.1% higher revenues at Rs.101,143 crore for the Sep-21 quarter while the profits were up 69.5% yoy at Rs.8,890 crore in the quarter. In terms of specific verticals of the bank, the positive growth was visible in the treasury and retail banking vertical revenues. However, revenues were sharply lower in wholesale banking. Insurance subsidiary saw sharply higher revenues on business expansion.

For the quarter, the all-important NII or Net Interest income grew 10.65% while the NIM expanded 16 bps at 3.50%. Of course, the NIM is still lower than many of its private sector counterparts. Credit costs for the quarter declined sharply by 51 bps to 0.43% while the cost to income ratio or the CI ratio fell sharply by 106 bps to 54.10%. These contributed to the robust growth in the profits in the quarter.

SBI performance also gained from a sharp fall in provisions for doubtful assets from Rs.11,221 crore in Sep-20 quarter to just Rs.615 crore in the Sep-21 quarter. This more than offset the exceptional cost of Rs.7,418 crore that SBI had to provide for as family pensions under the bipartite agreement. Even gross NPAs fell 38 bps to 4.90% while the provision coverage ratio or PCR improved to 87.68%. The ROE is not attractive at 13.17%, up 423 bps.

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