SBI Shares Log Worst Fall In Two Months As Analysts Raise Caution After Q1 Results

Shares of State Bank Of India registered their biggest single day fall since June 5 on Monday after analysts cautioned against India's biggest public sector lender's high credit costs following the release of first quarter results.

The state-run lender's standalone net profit increased 0.89% year-on-year to Rs 17,035 crore, according to an exchange filing on Saturday. Analysts polled by Bloomberg had estimated a net profit of Rs 16,595 crore.

SBI Q1 Results: Key Highlights (Standalone)

• Net interest income up 5.7% to Rs 41,125 crore (YoY).

• Net profit up 0.89% to Rs 17,035.16 crore (YoY).

• Gross NPA at 2.21% versus 2.24% (QoQ).

• NNPA at 0.57% versus 0.57% (QoQ).

The bank's credit costs increased to 0.48% due to higher seasonal slippages in agriculture and higher slippages in unsecured loans due to delayed salary credit in some states and higher ageing provisions, said Systematix in a note.

Shares of the company fell as much as 3.58% to Rs 817.50 apiece, the lowest level since June 7. It pared gains to trade 2.1% lower at Rs 830.15 apiece, as of 9:57 a.m. This compares to a 1.6% decline in the NSE Nifty 50 Index.

The stock has lost over 5% in its four-day fall. However, it has risen 29.2% on a year-to-date basis and 47.8% in the last 12 months. Total traded volume on the NSE so far in the day stood at 0.48 times its 30-day average. The relative strength index was at 39.52.

Out of the 49 analysts tracking the company, 38 maintain a 'buy' rating, seven recommend a 'hold,' and four suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 13.2%.