SBI banks on strong quarterly earnings
Cabnas
Monday, May 11, 2009
Meanwhile, the BSE Sensex was up 110.54 points, or 0.93%, 11,986.97.
On BSE, 38,832 shares were traded in the counter. The stock had an average daily volume of 9.84 lakh shares in the past one quarter.
The stock hit a high of Rs 1389 and a low of Rs 1340 so far during the day. The stock hit a 52-week high of Rs 1768 on 8 May 2009 and a 52-week low of Rs 894 on 9 March 2009.
The large-cap bank stock had outperformed the market over the past one month till 8 May 2009, gaining 17.91% as compared to the Sensex's return of 10.56%. It had underperformed the market in the past one quarter, rising 18.49% as compared to the Sensex's return of 27.69%.
The bank's current equity is Rs 634.88 crore. Face value per share is Rs 10.
The current price of Rs 1,357.70 discounts the bank's Q4 March 2009 annualized EPS of Rs 172.78, by a PE multiple of 7.86.
State Bank of India (SBI)'s total income rose 34.57% to Rs 22,060.61 crore in Q4 March 2009 over Q4 March 2008. The bank announced the results on Saturday, 9 May 2009.
The bank reported 35.55% surge in net profit to Rs 9,121.24 crore on 32.67% increase in total income to Rs 76,479.22 crore in the year ended March 2009 over the year ended March 2008.
On a consolidated basis, the bank's net profit rose 22.26% to Rs 10,955.28 crore on 25.35% increase in total income to Rs 1,13,093.09 crore in the year ended March 2009 over the year ended March 2008.
The bank posted higher profit on the back of higher other income and treasury income.
The bank's gross non-performing assets (NPA) rose 21.43% to Rs 15,588.60 crore as at 31 March 2009 from Rs 12,837.34 crore as on 31 March 2008. The ratio of gross NPA to gross advances declined to 2.84% as of 31 March 2009 from 3.04% as of 31 March 2008. The net NPA as of 31 March 2009 was at 1.76%, the bank said.
At the time of announcing results, the board of directors of the bank recommended a dividend at the rate of Rs 29 per share (290%).
Early this month, the bank cut its fixed deposit rates by 25 basis points on all tenures with effect from 4 May 2009.
SBI had on 20 February 2009 said that it had frozen interest rates for new car loans at 10% and loans to farmers against warehouse receipts at 8%. The revised car loan rates will be on offer for a limited period from 23 February 2009 to 31 May 2009 and the interest rate will be reset at the applicable card rate after 1 June 2010.
Earlier, SBI had on 31 January 2009 announced a freeze on interest rates on new home loans at 8% for a period of one year.
SBI provides banking, treasury and credit management services to individual and corporate clients. The government of India holds 59.41% stake in the bank as on 31 March 2009.
Sources :: State Bank of India |
