SBI shares jump 10% intraday despite dismal Q4
Shares of State Bank of India (SBI) rose over 9 per cent even as country's largest public sector lender reported a 66.32 per cent year-on-year (YoY) fall in net profit.
- May 27, 2016,
- Updated May 27, 2016 4:06 PM IST
Shares of State Bank of India (SBI) rose over 9 per cent even as country's largest public sector lender reported a 66.32 per cent year-on-year (YoY) fall in net profit at Rs 1,260 crore for the March quarter on account of higher-than-expected provisioning for bad assets. The stock hit an intraday high of Rs 202.00, up 9.93 per cent on the BSE.
The lender had reported a net profit of Rs 3,742 crore in the corresponding quarter a year ago.
Brokerage Angel Broking maintained 'neutral' rating on the stock.
"The good part is that the bank is recognizing the troubled assets and cleaning up the balance sheet. But we believe the cleaning up process should take another one year's time and till then time the provisions were remain high and hence bottom-line will be under pressure," said the brokerage.
Shares of State Bank of India (SBI) rose over 9 per cent even as country's largest public sector lender reported a 66.32 per cent year-on-year (YoY) fall in net profit at Rs 1,260 crore for the March quarter on account of higher-than-expected provisioning for bad assets. The stock hit an intraday high of Rs 202.00, up 9.93 per cent on the BSE.
The lender had reported a net profit of Rs 3,742 crore in the corresponding quarter a year ago.
Brokerage Angel Broking maintained 'neutral' rating on the stock.
"The good part is that the bank is recognizing the troubled assets and cleaning up the balance sheet. But we believe the cleaning up process should take another one year's time and till then time the provisions were remain high and hence bottom-line will be under pressure," said the brokerage.