SBI share rises 4% post strong Q4 earnings

Share of SBI rose 4 per cent to hit an intraday high of Rs 399.70 after the lender reported a net profit of Rs 6,451 crore for the quarter ended March 2021 compared to profit of Rs 3,581 crore in the same quarter a year ago.

Net Interest Income (NII) grew 19 per cent to Rs 27,067 crore in the March quarter compared to Rs 22,767 crore in Q4FY20. Gross non-performing assets (NPA) declined to 4.98 per cent in Q4FY21 against 6.15 per cent by the end of March last year. Net NPAs stood at 1.50 per cent from 2.23 per cent, down 73 basis points on a year on year basis.

Home loans, which constitute 23 per cent of the bank's domestic advances, have grown 10.51 per cent on a year-on-year basis. Slippages ratio for FY21 has declined to 1.18% from 2.16% as at the end of FY20. Credit cost at the end of FY21 has declined 75 bps YoY to 1.12%.

Operating profit stood at Rs. 19,700 crore in Q4FY21 as compared to Rs.18,465 crore in Q4FY20, an increase of 6.69% year on year. Sequentially, operating profit has increased by 13.66%

The stock opened 1.5 per cent higher at Rs 390.45 against the previous close of Rs 384.55. The large cap share has gained 162 per cent in one year and risen 45 per cent since the beginning of this year. SBI share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages.

"The situation continues to be uncertain and the bank is evaluating the situation on an ongoing basis. Major challenges for the Bank could be from extended working capital cycles, fluctuating cash flow trends and probable inability of the borrowers to meet their obligations against the loans timely," the company said.

SBI announced a dividend of Rs 4 per share, its first payout since May 2017, when it had rewarded shareholders with Rs 2.6 per share.