Friday, November 14, 2014

#SBI Q2 net up 30%, asset quality stable

India's largest public sector bank State Bank of India reported a net profit of Rs 3,100 crore in July-September quarter, up 30 per cent, from Rs 2,375 crore, in year ago period.
Net Interest Income(NII) was up 8.3 per cent at Rs 13,274 crore from Rs 12,251 crore, in the corresponding quarter last fiscal. The bank's gross NPA slipped to 4.89 per cent vs 4.9 per cent while net NPA increased at 2.73 per cent vs 2.66 per cent, QoQ.Fresh slippages were at Rs 7,700 crore from Rs 9,932 crore, QoQ.
SBI’s core performance (NII) came marginally lower at Rs.132.7 bn on back of lower NIM (3.1% in H1FY15) while advances continued to grow at moderate pace (9.7% YoY). PAT was marginally higher than our expectations on back of flat opex and lower tax payment (tax rate at 25.2% in Q2FY15) while robust non-interest income helped in strong net revenue figure (14.9% YoY). Asset quality has remained stable, positive for the stock. Although we are cautious on PSU banking space, we retain positive bias on SBI on its reasonable valuation as well as stabilizing asset quality,” Saday Sinha, banking analyst, Kotak Securities