SBI Net Profit Falls 7% but Stock Zooms 6.55%

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SBI Net Profit Falls 7% but Stock Zooms 6.55%

By Aditya Raghunath

Investing.com -- SBI ( State Bank of India (NS: SBI )), India’s largest public sector bank, reported its results for the third quarter of FY21, ended December 2020. Its net profit fell 6.9% to Rs5,196.22 crore compared to Rs 5,583.4 crore in the corresponding quarter last fiscal. The fall was due to increased provisioning for bad loans.

On a quarter-on-quarter basis, profit grew 13.6% from Rs 4,574.2 crore that is reported in the September quarter of 2020.

However, SBI’s profit after tax was a lot higher than analyst estimates, in some cases as much as 58% higher. The market was expecting SBI profits to take a plunge with HDFC (NS: HDFC ) Securities having an estimate of just Rs 2,360 crore.

"Excluding the one-off interest income and other income during Q3FY20, the YoY growth in net profit and operating profit for Q3FY21 would be 133.78 per cent and 26.23 per cent, respectively," the bank said in a statement.

The markets greeted the results with jubilation and the stock price went up by 6.55% with SBI leading the gainer's list on the NSE. SBI closed today at Rs 357.95.

In an interview with The Economic Times, IIFL Securities Director SanjivBhasin earmarked SBI as a possible outperformer in 2021. The stock was down at Rs 150 levels in May 2020 as fears of bad loans and NPAs (non-performing assets) grew.

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  • Jaymin Shah @Jaymin Shah
    now it will boom...profit is lower bcoz sbi has invested in yes bank, and many other bad banks to save depositers money...once all investments go good...it will boom
    Like 1
  • akshay patil @akshay patil
    i feel this time SBI will break big 375 resistance!
    Like 1
  • Mustafa Khan @Mustafa Khan
    My thoughts are like that of yours on SBI. No need to fear. The handicapped giant is going to make an impressive come back.
    Like 6
  • Mustafa Khan @Mustafa Khan
    My thoughts are like that of yours on SBI. No need to fear. The handicapped giant is going to make an impressive come back.
    Like 1

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