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SBI share price falls over 3% post Q1 earnings after net profit misses estimates

BusinessToday.In     August 2, 2019

State Bank of India stock fell 3.20% on Friday to day's low of Rs 307.20 after the public sector bank logged a lower than expected profit of Rs 2,312 crore in the first quarter ended June 30, hit by a tax expense even as bad loan provisions fell.

The stock price of SBI opened 2 points lower against the previous close of Rs 317.20 and fell to day's low of Rs 307.05, registering a decline of 3.20% on the BSE.

Shares of SBI were trading with higher volatility, as there was splurge on the volume traded, post the publishing of the earnings report today. Overall, 29.71 lakh shares and 644.72 lakh shares changed hands on BSE and NSE, both above 5,10 and 30-day average volume traded.

SBI's share price has moved below its 150-day simple moving average today, although it still trades higher than its 200-day SMA. The stock value has reduced by 9% in a week.

The biggest lender in India clocked a 176% quarter-on-quarter increase in net profit of Rs 838.40 cr, on the back of better asset quality and decline in loan provisions.

Gross and net NPAs, in absolute terms, declined both sequentially as well as on Y-o-Y basis, the bank said.

"Provision Coverage Ratio improved significantly by 1,009 bps from 69.25 per cent as on June 2018 to 79.34 per cent as on June 2019. Credit Cost at 2.03 per cent in Q1FY20, down 52 bps YoY. Capital Adequacy Ratio has improved from 12.83 per cent as on June 18 to 12.89 per cent as on June 19," SBI said in its statement.

SBI saw its interest income rise 6.5% to Rs 62,638 crore during the quarter under review, from Rs 58,813 crore seen during the same period last year.

"Agri slippages were high during the quarter. We are still hopeful by March 2020, we will bring slippage ratio to 2 % or below," said Rajnish Kumar, Chairman during a press conference.

The stock closed 2.76% lower at 308.45 on BSE and 2.90% down at Rs 307.95 on NSE.

Edited by Rupa Burman Roy


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