SBI Q3 results above expectations: KR Choksey

MUMBAI: KR Choksey Research is of the view that State Bank of India’s results for quarter ended December 2011 were above expectations. The brokerage has a ‘Buy’ recommendation on the stock and will review the rating after detailed analysis.

“Net Profit increased 15% y-o-y and 16% q-o-q to Rs 3,263 cr due to lower provisioning and strong NII growth.

NII grew 26.7% y-o-y and 10% q-o-q to Rs 11,466 cr against our estimate of Rs 10,546 cr primarily due to better than expected improvement in net interest margins.

Better than expected NII growth partially offset by lower non interest income resulted into 3.4% lower PPOP than our estimate. Lower provisions boosted PAT growth,” the report said.