SBI shares fall 4% on concerns over higher NPAs
Mumbai: Shares of SBI on Friday fell by nearly 4 percent, after the bank's reported 5.15 percent increase in gross non-performing assets in the second quarter ended September 30.
The steep fall in SBI also saw the benchmark Sensex falling over over 160 points.
SBI shares were battered as investors were concerned over a rise in bank's NPA, marketmen said. After declining over 4 percent during the day, SBI ended the day at Rs 2,156.35, 3.89 per cent lower on the BSE.
On NSE, the scrip plunged 3.98 percent at Rs 2,153.15.
Following the dip in stock prices, the market value of SBI plunged by Rs 5,852 crore to Rs 1,44,700 crore.
Government-owned State Bank of India (SBI) showed signs of stress on asset quality as the gross non-performing assets ratio jumped to 5.15 percent during the second quarter of current fiscal. Bank's profit, however, jumped 30.16 percent to Rs 3,658.14 crore.
Bonanza Portfolio Senior Vice-President Rakesh Goyal said: "Concerns over lower provisioning of bad loans as well as increase in non-performing assets (NPAs) led to steep fall in the stock price".
"SBI's numbers were below estimate, however PAT was in line with expectations. Overall SBI disappointed on NPA front," Rikesh Parikh, Vice President Equities, Motilal Oswal Securities said.