SBI shares hit record high after robust Q2 results; stock surges 4%

The shares of State Bank of India (SBI), India’s largest lender, shares jumped almost 4 per cent to hit a new life high of Rs 542.2 per share on the BSE intraday trade today, amid robust earnings during the second quarter of the financial year 2021-22.

The bank’s profit, as well as net interest income, grew exponentially, while its asset quality during the quarter improved marginally. In this regard, profit jumped 66.7 per cent year-on-year (YOY) to Rs 7626.6 crore; while NII grew 29 per cent YoY to Rs 31183.9 crore in Q2.

See Zee Business Live TV Streaming Below:

In terms of asset quality, the bank's gross non-performing asset (NPA) was reported at 4.9 per cent from 5.32 per cent quarter-on-quarter (QoQ), while net NPA at 1.52 per cent from 1.77 per cent sequentially; similarly, provisions slipped by over 46 per cent QoQ to Rs 2699.3 crore during Q2.

Sequentially, provision coverage ratio (PCR) came at 87.68 per cent during the quarter; recovery and upgradation at Rs 7,407 crore and domestic net interest marginat 3.5 per cent, highest in 6 years.

SBI in its press statement said, “Total deposits grew at 9.77 per cent YoY; current account deposits grew by 19.20 per cent YoY and saving bank deposits grew by 10.55% YoY. Similarly, whole bank advances grew by 6.17 per cent YoY.”

The stock ahead of its results announcement was trading around Rs 520 per share, however, it breached Rs 540 per share level for the first time after results declaration on the exchanges.

The counter in the last one month has surged over 17 per cent from Rs 463 per share on the BSE. While around 03:00 pm, it’s trading around 2 per cent to Rs 530.4 per share on the BSE as compared to a 0.42 per cent decline in the S&P BSE Sensex.