SBI rallies over 3% despite below-estimate Q2 profit

MUMBAI: Shares of State Bank of India, the largest public sector bank, moved over 3 per cent higher in trade on Wednesday on the back of better asset quality numbers even as the net profit was below estimates.

The bank reported a net profit of Rs 2,380 crore for the quarter ended September 2013 as compared to a net profit of Rs 3,658 crore in the corresponding quarter last fiscal year.

ET Now Poll had said the country’s largest public sector bank was expected to report 24 per cent YoY fall in net profit to Rs 2,780 crore.

At 12:55 p.m.; the stock was at Rs 1,717.60, up 2.48 per cent, on the BSE. It touched a high of Rs 1,735 and a low of Rs 1,653.40 in trade today.

Net interest income increased to Rs 12,251.4 crore as against Rs 10,974 crore in the same period last fiscal.

The bank’s asset quality performance was in-line with street estimates.

Its gross NPA stood at 5.64 per cent against 5.56 per cent, Quarter- on-Quarter (QoQ) and net NPAs slipped to 2.91 per cent against 4.75 per cent, QoQ.

Nitin Kumar, analyst, Quant Broking is of the view that while the PAT is below street estimates, the asset quality numbers were not too bad when compared with other banks