SBI slumps over 4% on BSE; Rs 5,637 cr in M-cap

SBI slumps over 4% on BSE; Rs 5,637 cr in M-cap Mumbai: Shares of SBI Friday plunged over 4 percent, eroding Rs 5,637 crore from its market value on worries of rising non-performing loans even as the company reported 137 percent jump in profit for the first quarter ended June 30.

Shares of the country's largest bank lost 4.26 percent to close at Rs 1,887.95 on the BSE as investors were concerned over mounting NPAs.

"SBI's Q1 FY13 PAT was slightly below expectation. However, the biggest disappointment came on the asset quality front. Overall, numbers are not very encouraging," Saday Sinha, Banking Analyst, Kotak Securities said.

Intra-day, the scrip was down 4.78 percent.

At NSE, the stock lost 4.11 percent.

SBI ended as the biggest loser among Sensex stocks, which closed flat at 17,557.74.

In the process, the company's market capitalisation declined by Rs 5,637 crore to Rs 1,26,689 crore.

Rikesh Parikh, VP Markets Strategy and Equities, Motilal Oswal Securities said, "Stress on assets can be seen from increase in gross NPA and net NPA, which is disappointing."

SBI Friday reported a 137 percent jump in net profit at Rs 3,752 crore for the first quarter ended June 30, 2012, though rising non-performing loans continue to be a cause of concern.

The bank had a net profit of Rs 1,583 crore in the April- June quarter of 2011-12 fiscal.

The bank's net non-performing assets (NPAs) rose to 2.22 percent of total loan book at the end of June, against 1.61 percent a year ago, reflecting the impact of slowing economy.

PTI