SBI share price rises after strong Q1 results - profit skyrocketted 81 pct! Stock set to shoot up too
SBI Q1 Results 2020: After the announcement of strong quarterly results by the State Bank of India (SBI), SBI shares shot up to the tune of 2.71 per cent today.
SBI Q1 Results 2020: After the announcement of strong quarterly results by the State Bank of India (SBI), SBI shares shot up to the tune of 2.71 per cent today. SBI share price went up to Rs 194.20 — its intraday high immediately after the announcement of the SBI Q1FY2020 results. According to the share market experts, SBI share price may show up to Rs 240 per stocks in long-term. Currently, it is at around Rs 190-191 per shares mark.
Stocks To Buy
Speaking on the impact of strong SBI quarterly results, Avinash Gorakshkar, a SEBI registered fundamental stock analyst said, "SBI has reported better than expected numbers and its asset quality has gone down that led to sharp rise in the SBI share price. In long-term, one can buy the counter and those who already have the counter can hold it for the target or Rs 230-240 levels."
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SBI Net Profit
SBI has reported 81 per cent rise in Net Profit to Rs 4,189 crore in Q1FY 2020. The largest Indian commercial bank has delivered a strong performance in Q1FY21 with all round improvement in Profitability, Capital Adequacy and Provision Coverage Ratio, including Additional Provision over Minimum Regulatory Provisions required.
In a statement, SBI said, "Bank registered a Net Profit of Rs 4,189 Crores in Q1FY21, an increase of 81 per cent over Q1FY20. Operating Profit increased to Rs 18,061 Crores in Q1FY21 from Rs 13,246 Crores in Q1FY20, an increase of 36.35 per cent Year on Year (YoY). Home loan, which constitutes 22 per cent of Bank’s domestic advances, has grown by 10.72 per cent YoY."
SBI went on to report that Net Interest Income of the Bank grew by 16.14 per cent YoY during Q1FY21. Domestic Net Interest Margin (NIM) improved to 3.24% per cent in Q1FY21, registering an increase of 23 bps YoY. Total Deposits grew at 15.96 per cent YoY, out of which Current Account Deposit grew by 12.98 per cent YoY, while Saving Bank Deposits grew by 17.29 per cent YoY.
Net NPA ratio at 1.86 per cent is down 121 bps YoY and 37 bps QoQ. Gross NPA ratioat 5.44 per cent is down 209 bps YoY and 71 bps QoQ. Return on Assets (RoA) of the bank increased by 17 bps YoY to 0.42 per cent in Q1FY21 against 0.25 per cent in Q1FY20.
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