Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
06 March, 2015 19:36 IST
SBI Q3 subdued, maintain Accumulate: Angel Broking
Source: IRIS | 14 Feb, 2013, 04.39PM
Comments  |  Post Comment

State Bank (Q,N,C,F)* of India (SBI), the largest public sector lender, announced Thursday a rise of 4.08% y-o-y in net profit to Rs 33.96 billion for the quarter ended Dec. 31, 2012. Analysts on an average had expected net profit to come at Rs 35.13 billion.

During the quarter, total income grew 14.12% to Rs 339.92 billion over same period last year. NII for the quarter came in at Rs 111.54 billion.

Meanwhile, net NPA was at 2.59% as on the quarter ended Dec. 31, 2012, as compared to 2.22% in the year ago period. While gross NPA is at 5.30% as on Dec. 31, 2012 as compared to 4.61% in the same period last year.

Vaibhav Agrawal, VP research, Angel Banking said, ''State Bank of India reported subdued operating performance for 3QFY2013, as its net interest income (NII) and operating profit declined by 2.7% and 4.2% yoy, respectively. The bank has been aggressive in cutting its lending rates, so the decline in NII, was in-line with our expectations. The bank witnessed continued pressures on the asset quality front, as elevated slippages and sequentially lower recoveries/upgrades resulted in 8.6% sequential increase in gross NPA levels, with net slippages being about Rs 8 billion higher than our estimates. As a result, in spite of slightly higher provisioning expenses than estimated by us, provisioning coverage ratio declined by about 130bp sequentially. We await the guidance of the management on the asset quality outlook, in the backdrop of an improvement seen in the overall asset quality of the PSU pack. At the current market price, the stock is trading at 1.5x FY2014E ABV (adjusting for value of subsidiaries 1.3x FY2014E ABV) vis-à-vis its historic range of 1.3-2.3x and median of 1.6x. We maintain our Accumulate view on the stock."

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.

Comments Post comment 
 Post Comment
Name Email
Comment
Security Code type    into this box
Related Articles
FIIs can invest up to 34% in Container Corporation - 05-Mar-2015 18:44
BEML rolls out country's biggest dump truck - 05-Mar-2015 17:45
ICICIdirect selects Tech Mahindra as techno-funda pick - 05-Mar-2015 16:35
Tele2 and HCL Technologies form strategic alliance - 05-Mar-2015 15:52
ONGC's oil production from its western offshore breaks 5 years record - 05-Mar-2015 13:07
NTPC commissions Barh Thermal Power Project - 05-Mar-2015 12:31
Tech Mahindra strengthens footprint in Vietnam - 05-Mar-2015 11:38
Aban Offshore arms redeem outstanding bonds worth Rs 13.35 bn - 05-Mar-2015 09:52
Aban Offshore arms redeem outstanding bonds worth Rs 13.35 bn - 05-Mar-2015 09:52
Axis Bank raises USD 250 mn via overseas bonds - 05-Mar-2015 09:48
Reliance Infra acquires Pipavav Defence - 05-Mar-2015 09:19
more...
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer