Now Reading: SBI beats Q1 profit estimates, chairman dismisses asset quality fears
-
01
SBI beats Q1 profit estimates, chairman dismisses asset quality fears
SBI beats Q1 profit estimates, chairman dismisses asset quality fears
State Bank of India posted a standalone net profit of Rs 21,121 crore for Q1 FY27, beating market estimates. Profit rose 10.2% year-on-year and 7.3% sequentially, driven by a nearly 15% jump…
The Story in Brief
State Bank of India posted a standalone net profit of Rs 21,121 crore for Q1 FY27, beating market estimates. Profit rose 10.2% year-on-year and 7.3% sequentially, driven by a nearly 15% jump in net interest income. The bank's domestic net interest margin improved 7 basis points to 3.0%. SBI shares touched an intraday high of Rs 1,124.50 on the NSE before closing at Rs 1,097, up 1%.
Chairman CS Setty dismissed concerns about a sequential rise in gross NPAs to Rs 74,273 crore and slippages of 0.57%, calling first-quarter figures misleading due to seasonal patterns. He maintained the bank's full-year credit growth guidance of 14-15% and said recoveries and upgrades reduced stress by around Rs 4,900 crore during the quarter. Some analysts have set a target price of Rs 1,300 on the stock.
The Indian Opinion
The SBI boss is right to warn against reading too much into a single quarter. Yet the noise around a small rise in bad loans or a blip in corporate lending shows how nervously markets watch India's largest lender. The real test is not this quarter's slippages but whether FY27 guidance of 14-15% credit growth holds. If agricultural and SME lending, growing at 25% and 22%, stays healthy, the sceptics will be proved wrong.
Sources (2): livemint.com, freepressjournal.in
This story was synthesised by AI from the 2 sources linked above.
