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SBI shares fall after Q1 results as profit booking hits trading
The stock slipped as much as 1.49% on the NSE, while SBI reported higher interest income and improved asset quality alongside rising provisions.
State Bank of India shares retreated Monday after the lender posted June quarter results that beat market estimates, with trading activity showing profit booking as the stock gave up early gains. LiveMint Markets reported SBI shares opened at ₹1,108 on the NSE, before moving down as much as 1.49% during the session.
The bank said interest income rose 14.88% year over year to ₹46,992 crore in the quarter, from ₹40,907 crore a year earlier. It also reported asset quality improvement sequentially, with gross non-performing asset ratio declining to 1.47% from 1.49%, and net NPA edging down to 0.38% from 0.39%.
Despite the improvement in NPA ratios, provisions increased to ₹5,047 crore in the June quarter, up from ₹2,872 crore in the previous quarter. Fresh slippages rose to ₹7,359 crore from ₹5,548 crore sequentially, taking the slippage ratio to 0.57% from 0.47%.
Operationally, SBI’s domestic net interest margin was reported at 3%, while whole-bank NIM improved by 5 basis points quarter over quarter to 2.86%. LiveMint Markets also said SBI’s ROA was 1.11% and ROE was 17.87%, with CRAR rising to 15.67% from 14.63% a year earlier, and that about 94.90 lakh shares changed hands on Monday.