SBI shares stuck in a tight range despite strong Q3 results – here's what investors can do
SBI said on Friday that its overall exposure to the Adani group is at Rs 27,000 crore, and it does not see any difficulties in loan repayments.
SBI shares swung between gains and losses amid choppy trade on Monday amid overall weakness on Dalal Street. The SBI stock gyrated in a Rs 21.5 range around the flatline — between Rs 536.8 and 558.3 — reversing initial gains after a strong start to the day. Post-market hours on Friday, India's largest lender by assets reported a record quarterly profit with improving asset quality.
SBI Q3 results
SBI reported 68.5 per cent growth in net profit to Rs 14,205 crore for the October-December period, aided by core income expansion and. The PSU lender’s net interest income – or the difference between interest earned and interest paid – increased 24 per cent to Rs 38,069 crore on the back of 14-basis-point expansion in the net interest margin – a key measure of profitability for banks – to 3.69 per cent.
Both topline and bottomline far exceeded analysts' expectations.
According to Zee Business research, SBI's quarterly net profit was estimated at Rs 13,400 crore and NII at Rs 37,300 crore.
SBI exposure to Adani Group
The state-owned lender disclosed that its overall exposure to the Adani conglomerate is at Rs 27,000 crore, and it does not see any difficulties in loan repayments.
SBI Chairman Dinesh Khara said the non-fund exposure is limited to letters of credit and performance bank guarantees and is not related to any equity raising or acquisition activities of the Adani group.
What brokerages recommend on SBI
Brokerages are upbeat on SBI on the back of the bank's strong results.
|Morgan Stanley||Overweight||Rs 715|
|JP Morgan||Overweight||Rs 720|
|Goldman Sachs||Buy||Rs 788|
SBI share price history
SBI Shares have risen merely two per cent in the past one year, a period in which the Nifty50 is up 2.9 per cent.
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