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SBI stock top Sensex, Nifty gainer after lender reports first profit in four quarters; bad loan provisions fall

However, the lender reported 69 per cent decline in consolidated net profit to Rs 576.46 crore in the second quarter ended September 30 compared to Rs 1,840.43 crore net profit in the July-September quarter of previous fiscal.

twitter-logo BusinessToday.In        Last Updated: November 5, 2018  | 17:41 IST
SBI stock top Sensex, Nifty gainer after lender reports first profit in four quarters; bad loan provisions fall

The SBI stock closed at a two-month high today after the public sector lender clocked its first profit in four quarters and bad loans provisions fell 39% on year-on-year basis. However, the lender reported 69 per cent decline in consolidated net profit to Rs 576.46 crore in the second quarter ended September 30 compared to Rs 1,840.43 crore net profit in the July-September quarter of previous fiscal.

Its total income (consolidated) rose to Rs 79,302.72 crore in the quarter under review, compared to Rs 74,948.51 crore in the year-ago period, State Bank of India (SBI) said in a regulatory filing.

The stock closed 3.45% or 9.85 points higher at 295 on the BSE. It was the top Sensex and Nifty gainer in trade today. On Nifty, the stock surged 3.77% to 296.10 level.

The large cap stock has lost 9.14% during the last one year and fallen 4.59% since the beginning of this year.

It touched an intra day high of Rs 299.90 or a gain of 5.06%.

37 of 42 brokerages rate the stock "buy" or 'outperform', four "hold" and one "sell", according to analysts' recommendations tracked by Reuters.

Provisions for bad loans fell to Rs 10,184 crore in Q2 this fiscal compared to Rs 16,715 crore in the corresponding quarter of the previous fiscal. Bad loan additions slowed in the quarter, pushing the overall bad-loan ratio down.

The bank's asset quality improved, with gross bad loans as a percentage of total loans at 9.95 percent at September-end, compared with 10.69 percent in the previous quarter. It was still slightly higher than 9.83 percent in the year-ago period.

The bank also said it was on track to meet slippage ratio and credit cost guidance for FY19 and FY20.

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