SBI shares rebound 6% from day's low on in-line March quarter results

Shares of State Bank of India (SBI) bounced 6 per cent from its intra-day low and hit a high of Rs 399.70 on the BSE on Friday after the lender announced its March quarter result. The stock had initially fallen 3 per cent to Rs 378.10, from its opening level of Rs 390.45, post the announcement of the results.

At 02:36 pm, SBI was trading 3.5 per cent higher at Rs 397.85 on the BSE supported by heavy volumes. The trading volumes on the counter nearly doubled with a combined 148 million equity shares having changed hands on the NSE and BSE. In comparison, the S&P BSE Sensex was up 1.8 per cent at 50,447 points.

India's largest public sector bank SBI on Friday reported a standalone profit after tax (PAT) of Rs 6,450.75 crore for quarter ended March 2021 (Q4FY21) aided by fewer provisions on bad loans. The lender’s PAT was 80.14 per cent higher than previous year’s profit of Rs 3,580.8 crore. On a quarterly basis, the bottom line expanded 24.14 per cent. The bank’s domestic credit growth stood at 5.67 per cent YoY, mainly driven by retail (personal) advances, SME and agri advances.

Net interest income (NII) – the lender’s main source of income – increased 18.89 per cent year on year (YoY) to Rs 27,067 crore during the quarter. Net interest margin (NIM) improved 17 basis points (bps) to 3.11 per cent from 2.94 per cent in a year ago quarter. On sequential basis, NIM down 23 bps from 3.34 per cent in Q3FY21.

During the quarter under review, the lender’s loan loss provision dropped 16.6 per cent YoY to Rs 9,914 crore from Rs 11,894 crore in Q4FY20. Net non-performing assets (NPA) ratio declined 73 bps YoY at 1.53 per cent, while gross NPA ratio stood at 4.98 per cent was down 117 bps YoY, SBI said in a press release. The bank further said its provision coverage ratio (PCR) has improved to 87.75 per cent, up 413 bps YoY. Slippages ratio for FY21 has declined to 1.18 per cent from 2.16 per cent as at the end of FY20.

The board has declared a dividend of Rs 4 per equity share (400 per cent) for the financial year ended March 31, 2021. The date of payment of dividend is fixed on June 18, 2021.