State Bank of India shares surged over 9 per cent on Friday after investors cheered the news of drop in slippages (fresh bad loans) of the public sector bank. The bank’s fresh slippages stood at Rs 8,790 crore as compared to Rs 30,313 crore in the sequential quarter ended March 31, 2016.
At 1.08 pm, State Bank of India scrip was trading 8.17 per cent up at Rs 245.50. The scrip opened at Rs 226.95 and has touched a high and low of Rs 247.50 and Rs 224.40, respectively, in trade so far. Later, the share price of the company ended 7.16 per cent up at Rs 243.20.
Beating estimates, the banks’s standalone net profit fell 31.72 per cent to Rs 2,520.96 crore for the quarter ended June 30, 2016 as compared to Rs 3,692.43 crore in the corresponding quarter a year ago. The bank’s consolidated net profit declined by 77.80 per cent to Rs 1046 crore for the quarter under review as against Rs 4713.57 crore in the corresponding quarter last year. Reuters analysts had expected a net profit of Rs 2500.4 cr. Brokerage House Emkay Research said the first quarter performance is in line with estimates and asset quality is stable.
The public sector lender’s net interest income rose marginally by 0.04 per cent to Rs 14312.31 crore for the June quarter as against Rs 13732.03 crore in the corresponding quarter a year ago.
Percentage of net non-performing assets rose 4.05 per cent against 3.81 per cent on quarter-on-quarter basis. On sequential basis, percentage of gross non-performing assets jumped to 6.94 per cent from 6.50 per cent.