Quarterly Result: State Bank of India

Technical View: 

State Bank of India ended at Rs. 275.5, down by 6.1 points or 2.17% from its earlier closing of Rs. 281.6 on the BSE.
The scrip touched a high and low of Rs. 288.5 and Rs. 270.7 respectively, after opening at 278.95. Altogether 44668078(NSE+BSE) shares have been traded on the counter so far; and the stock is trading below its 50 DMA.

Standalone Results Q2FY17:

State Bank of India’s Q2FY17 standalone numbers have beaten street estimates. NII  has come in 4.3% higher than our estimate of Rs 13,840 cr.  Net profit for the period is 15.4% above the estimate of Rs 2,200 cr.

SBI's NII for the period has come in at Rs 14,438 cr registering a 1.3% yoy upsurge.

Gross NPA’s for the period recorded a 3% yoy rise to Rs 1,05,783 cr leading to a 300 bps worsening of asset quality. Thereby, Gross NPA as a percentage of Gross Advances stands at 7.1%.

Provisions for bad loans have risen 99.6% yoy to Rs 7,670 cr.

SBI's net profit for the quarter stands at Rs 2,538 cr, a yoy depletion of 34.6% due to the greater provisions made during the quarter.

SBI has raised Additional Tier I capital worth Rs 6,600 cr during Q2FY17; and an additional Rs 2,500 cr so far in Q3FY17. It also expects to raise Rs 7,575 cr from the Government of India.