SBI Q1FY20 Results: The State Bank of India (SBI) has registered a Net Profit of Rs 2,312 crore during Q1FY20 as against Net Loss of Rs 4,876 crore during Q1FY19. This is also 176% higher than the Net Profit for Q4FY19. In a written press statement issued by the largest commercial bank of India, this could become possible due to the robust Domestic Credit Growth, increase in Y-o-Y operating profit and growth in net interest income. Sensing the strong quarterly number of SBI, the stock market experts have advised investors to adopt 'buy on dips'strategy as the SBI share price is trading in the range of Rs 310 per stocks to Rs 332 per stocks.

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Detailing the Q1FY20 results of the SBI, the PSU bank issued a  written statement citing, "The Bank registered a Net Profit of Rs. 2,312 Cr during Q1FY20 as against Net Loss of Rs. 4,876 Cr during Q1FY19. This is also 176 per cent higher than the Net Profit for Q4FY19. Operating profit increased by 10.63 per cent YoY. Excluding the one-off items in Q1FY19, Operating Profit has increased YoY by 31.89 per cent." The SBI went on to inform in its statement that its Net Interest Income grew by 5.23 per cent YoY in Q1FY20. The SBI further added that if we exclude the one-off items in Q1FY19, Net Interest Income grew healthy at 15.45 per cent YoY.

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Informing about the gross NPA the SBI informed that its Gross NPA Ratio at 7.53 per cent down 316 bps YoY. GNPA in absolute terms has declined both sequentially as well as YoY. Net NPA Ratio at 3.07 per cent down 222 bps YoY. Net NPA in absolute terms has declined both sequentially as well as YoY.

On what would be its impact on the SBI share price Prakash Pandey, Head of Research at Fairwealth Securities said, "The SBI has given strong first-quarter numbers and it is in sync with the market expectations. Since the banking stocks are facing huge selloff due to the FPIs,  I would recommend investors to adopt buy on dips as its support at Rs 310 per stock would remain strong after the strong Q1FY20 results." He said that the SBI share price is trading in the range of Rs 310-332 and any correction in the SBI stock should be seen as a buying opportunity.