Wednesday, November 3, 2021

SBI Q2 PAT up 69.46% yoy at Rs8,890cr | STOCK OUTLOOK


State Bank of India Q2 PAT up 69.46% yoy at Rs8,890cr on sharp fall in provisioning for doubtful assets

State Bank of India Ltd reported 6.05% higher total revenues for the Sep-21 quarter on consolidated basis at Rs101,143cr

State Bank of India Ltd reported 6.05% higher total revenues for the Sep-21 quarter on consolidated basis at Rs101,143cr. The revenues were up 8.44% on a sequential basis compared to Rs93,267cr revenues in the Jun-21 quarter.

In terms of segmental revenues, SBI reported growth in treasury and retail banking revenues while the revenues from wholesale banking was lower. Insurance revenues were sharply higher on yoy basis.

Net Interest income grew by 10.65% yoy while the net interest margins or NIM expanded by 16 bps at 3.50%. Home loans constitute 24% of total advances and that grew 10.7% yoy.

Credit costs for the quarter declined sharply by 51 bps to 0.43% even as the cost to income ratio fell sharply by 106 bps to 54.10%.

The consolidated Profit after tax (PAT) for the Sep-21 quarter was up 69.46% at Rs8,890cr on the back of a sharp drop in provisions for doubtful assets in the quarter.

On a yoy basis, the provisions in Q2 fell to Rs615cr compared to Rs11,221cr in the year ago period. This more than offset the exceptional provision of Rs7,418cr that SBI had to make for payment of family pensions under the bipartite agreement.


Strong long term outlook , hold with stoploss of 502 in short term and stop loss of 434 for long term. 

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