State Bank of India stocks listed on both NSE and BSE, today reached a record high of 15% at Rs 408 as several brokerage firms voiced high expectations from the share price.
The revenue flowing in from SBI is a very important factor that reflects India’s economic situation as it makes up for about a fifth of loans in the entire country’s banking arena. SBI is India’s largest bank by assets.
Revealing its Q3 earnings, SBI showed a consolidated increase of 15.5% in retail loans in the quarter ending-December, which boosted the company’s credit by 6.73%.
Retail loan growth has been consistently recovering. Deposits had also increased, while margins were not volatile at all.
Lender’s net profit had decreased when compared to the same quarter in the previous financial year but had increased on a quarterly basis at ₹5,196.22 crore.
The total bad loans of the bank stood at 4.77%, which was lesser as compared to the 5.28% reported in the Q2 results.
During the pre-market opening between 9:00 – 9:15 AM, the stock price of SBI showed strong volume resulting in the share reaching a high of 10% before the market opened at 9:15 AM.
Brokerage company, Yes Securities, remarked on the excellent financials of the bank saying, “Strong indications of improved asset quality outcomes driving profitability normalization. With capital and credit scenario no more a constraint, SBI’s loan growth is expected to move past 10-12% over the medium term supported by increasing lending opportunities.”