Share price of state Bank of India (SBI) saw a decline of 1.58 percent 753.95 in Thursday’s trade session even after strong results of public sector bank for the December quarter.
SBI posted 84 percent year-old year (YOY) in its net profit for the quarter ended 31 December, 2024. 16,891 crores, crossing expectations. In the same period last year, the public sector lender had a net profit 9,164 crores.
Pignificant interest income (NII) increased by 4 percent 41,446 crore compared to, 39,816 crore in the same period last year. Employee spending for bank has decreased by 17 percent 16,074 crores.
SBIDomestic loans experienced an increase of 14.06 percent year after year. The net interest margin (NIM) for the entire bank for the first three quarters of FY25 is 3.12 percent, while the domestic NIM is 3.25 percent. The entire bank for Q3Fy25 is NIM 3.01 percent, and domestic NIM is 3.15 percent.
The quality of the assets of the lender showed the positive movement, with the gross NPA ratio declined to 2.07 percent at the end of December 2024, compared to 2.13 percent at the end of the previous quarter (September 2024). During the same period, the NET NPA ratio remained 0.53 percent stable.
During the reported quarter, the lender’s deposit increased by 9.81 percent 52.3 lakh crores, from above 47.62 lakh crore in the same period last year.
“State Bank of India (SBI) posted a strong Q3Fy25 net profit 16,891 crores, a 84.32% yoy marked by yoy jump 9,164 crores. Operating profit 15.81% yoy increased 23,551 crores. The bank’s ROA improved by 42 basis points to 1.04%respectively, 21.46%and 1.09%for ROE and ROA 9MFY25 respectively. Pure interest income (NII) increased to 4.09% yoy 41,446 crores. SBI’s credit increased by 13.49% yoy, with domestic advances 14.06%. Deposit 9.81%yoy increased, while CASA deposits increased 4.46%, leading to 39.20%CASA ratio. The entire bank and domestic NIMs stood at 3.01% and 3.15% respectively, ”said Ansul Jain, head of the research of Laksamishri Investment and Securities.
Buy or Sell?
According to Sumit Bagadia, the Executive Director in the choice of broking, SBI Share price has created a strong base 720, and banking can reversed with major low levels.
“If it remains important, then SBI shares can touch soon 780 and 800 Apis Mark. Therefore, SBI shareholders are advised to maintain stop losses 720 and hold the scrip for the above goals. Similarly, fresh investors can initially buy speed at the current market price and continue to buy on dips for short -term targets. 800. However, they are also advised to maintain a strict stop loss. 720, ”said Bagadia.
