State Bank of India’s shares added over 6 percent on Tuesday afternoon even as the bank posted a net loss of Rs 7,700 crore for the March quarter.
The stock touched an intraday high of Rs 259.90 and an intraday low of Rs 241.30.
The country’s largest reported a net loss of Rs 7,718 crore for the March quarter.
A Reuters’ poll had estimated the bank to report a loss of Rs 1,270.5 crore, as against a net profit of Rs 2,814.82 crore reported in the same quarter last year.
During the quarter, provisions surged to Rs 28,096 crore, up from Rs 11,740 crore in the corresponding quarter last year. A Reuters poll had estimated it to rise to Rs 14,834 crore.
“Looking at other banks’ results, analysts were expecting State Bank of India to post a huge loss as well, the expectations could have been around Rs 2,000-odd crore. While all PSU banks have been writing off (their books) aggressively, in SBI’s case too it was anticipated. With such results, the stock could have probably fallen, but has actually managed to be steady. So, the worst was probably being priced in by investors in case of this stock,” AK Prabhakar, Head of Research at IDBI Capital told Moneycontrol.
On the asset quality front, the lender’s ratio of gross non-performing assets (NPAs) to its total loans worsened to 10.91 percent as on March 31, from 10.35 percent as on December 31, 2017, and 9.1 percent at the end of March last year.
Net NPAs came in at 5.73 percent of total loans, up from 5.61 percent at the end of the December quarter, and 5.19 percent at the end of March last year.
At 14:16 hrs State Bank of India was quoting at Rs 252.95, up Rs 7.85, or 3.20 percent, on the BSE. It touched an intraday high of Rs 259.90 and an intraday low of Rs 241.30.