State Bank of India's shares today fell by nearly 5 per cent, wiping out Rs 10,441 crore from its market valuation, after the company saw increase in net non-performing assets on sequential basis in the June quarter.
The blue-chip stock dipped 4.87 per cent to settle at Rs 269.30 on BSE. During the day, it plunged 5.24 per cent to Rs 268.25.
At the NSE, its shares fell by 4.93 per cent to Rs 268.80.
Following the decline in the stock, the company's market valuation went down by Rs 10,440.76 crore to Rs 2,03,758.24 crore.
On the volume front, 51.34 lakh shares of the company changed hands at BSE and over three crore shares were traded at the NSE during the day.
Gaurav Jain Director Hem Securities said: "Disappointing income posted by SBI hurts the hopes of the street."
State Bank of India today reported a 5.9 per cent increase in net profit at Rs 4,713.57 crore for the first quarter ended June on the back of a decline in bad loans.
The country's largest bank registered a consolidated nets profit of Rs 4,448.15 crore in the same quarter last year.
Net NPAs of the bank declined to Rs 28,669.14 crore (2.24 per cent) at the end of the first quarter, against Rs 31,883.80 crore (2.66 per cent) in the year-ago period.
However, on sequential basis it rose to 2.24 per cent from 2.12 per cent in March quarter.
Total income rose to Rs 62,927.46 crore from Rs 60,620.93 crore in April-June of 2014-15.
The bank's provisions for bad loans fell to Rs 3,358.58 crore as against Rs 3,903.41 crore in the year-ago period.
At the same time, its gross non-performing assets (NPAs) dropped to 4.29 per cent of total advances at the end of June, against 4.90 per cent a year ago.
On a standalone basis, the bank's net profit increased by 10.2 per cent to Rs 3,692.43 crore for the quarter under review as against Rs 3,349.08 crore a year ago.
Total income was up at Rs 44,730.87 crore during the quarter, against Rs 40,739.21 crore in the year-ago period.
In value terms, SBI's gross NPAs slumped to Rs 56,420.77 crore (4.29 per cent of loans) during the June quarter, from Rs 60,434.24 crore (4.90 per cent) on a yoy basis.
