SBI answers all Questions, becomes the Bull for Q1

The market welcomed SBI

quarter result with a huge
round of applause. The result
the banking leader presented
has been way better than the
market
expectation.
The
street gifted over 8% rise in
SBI share price in return.
Although the standalone net
profit reported 31.7% drop in
Y-o-Y at Rs. 2,520 crores, the
Poll had expected the net
profit to be Rs 2,475 crore. In the corresponding quarter last year, the value stood at Rs
3,692.43 crore.
The bank reported its gross non-performing assets at 6.94% which the street expected to be
over 7%. The company had given its GNPAs at 6.5% in the fourth quarter of FY16. The
velocity of rising of NPAs was slower than some of the peer PSU banks, elating the sentiment
on the counter. SBI share price rallied over around 9% after the report came in. This was the
landmark intraday gain reported by any scrip in one years time.
The total provision was reported at Rs. 7,410 crores for this quarter while in the corresponding
quarter last financial year it was valued at Rs. 4000 crores. The provisions for bad loans stood
at Rs. 6,340 crores in compared to Rs. 3,360 crores in Q1FY16. Provision coverage ratio was
reported at 61.57%. The takeaway of the result was that the bank managed to lower its
slippages significantly on the sequential basis which stood at Rs 87,904 crore for the quarter.
Banks prime earning, the Net Interest Income increased 6.4% YoY to Rs 14,612 crore,
compared to Rs 13,732 crore in the year-ago quarter.
Currently, SBI share price was trading at Rs. 245.85, a few inched away from its 52 weeks
high value. The stock is among top 500 performers of the quarter picked by Dynamic Levels
and has been trading near its closest support level. For details on the support and resistance
level of the stock, check the SBI share price forecast page of the website.

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