SBI Stock Falls 5% As Q1 Net Profit Flat
The bank's ROA and ROE stands at 1.10 per cent and 20.98 per cent respectively, while the net NII for the quarter rises by 5.71 per cent YoY
The stocks of State Bank of India (SBI) plummeted 5 per cent in the Monday trading session as the public lender registered a negligible growth in its Q1 FY 2024-25 net profit.
SBI declared the Q1 corporate earnings with a net profit of Rs 17,035 crore with merely 0.89 per cent year-on-year (YoY) growth. However, the operating profit for the quarter saw a rise, increasing by 4.55 per cent YoY to Rs 26,449 crores.
SBI stock traded at Rs 805 with 5 per cent loss in the afternoon session on the National Stock Exchange (NSE).
The bank's return on assets (ROA) and return on equity (ROE) stood at 1.10 per cent and 20.98 per cent respectively, while the net interest income (NII) for the quarter rose by 5.71 per cent YoY.
SBI's credit growth remained at 15.39 per cent YoY and domestic advances expanded by 15.55 per cent YoY. Agricultural advances also showed a healthy increase of 17.06 per cent YoY.
Whole bank deposits experienced an 8.18 per cent YoY increase, with current account and savings account (CASA) deposits growing by 2.59 per cent YoY, resulting in a CASA ratio of 40.70 per cent as of 30 June 2024.
The bank's asset quality showed an improvement, with the gross non-performing assets (NPA) ratio declining by 55 basis points (bps) YoY to 2.21 per cent. The net NPA ratio also improved, dropping by 14 bps YoY to 0.57 per cent.
Furthermore, the slippage ratio for Q1FY25 improved by 10 bps YoY to 0.84 per cent, and the credit cost for the quarter was reduced to 0.48 per cent.
In terms of stock performance, the PSU stock grew 25 per cent in the year 2024 so far against the 3.per cent year-to-date (YTD) growth on the sectoral index, Bank Nifty.
