SBI - Q4FY13 Result Update - Microsec

State Bank of India Ltd. announced its Q4FY13 and FY13 result on 23rd May 2013.

In Q4FY13, the bank's total income increased by 12.31% QoQ while, declined by 2.02% YoY to INR16625.10 crores on account of 0.68% QoQ and 4.42% YoY declined in its Net Interest Income (NII). Whereas, Profit After Tax (PAT) declined by 2.85% QoQ and 18.54% YoY to INR3299.22 crores. Higher provisions against non-performing assets (NPAs) dented the bank's bottom line.

During the quarter, bank's loan book and total deposits expanded by 20.52% and 15.24% YoY to INR1045616.55 and INR1202739.57 crores respectively. On the asset quality front, bank has improved its asset quality. GNPA and NNPA improved by 55 and 49bps QoQ to 4.75% and 2.10% respectively. Moreover, Capital Adequacy Ratio (CAR) has been improved by 71bps QoQ to 12.92%, which is 3.92% higher than the regulator's stipulated norm. On the margin front, Net Interest Margin (NIM) improved by 3bps QoQ to 3.66%. Provision Coverage Ratio (PCR) stood at 66.58%, improved by 509bps QoQ, which positioned it to tame any time liabilities.

For the full year of FY13, bank's top line grew by 4.73% YoY to INR60366.14 crores. Whereas, bottom line increased by 20.48% YoY to INR14104.98 crores.

The Board of Directors have recommended a dividend INR41.50 per equity share of the face value of INR10 each.

At the CMP of INR2181, the stock is trading at P/BV of 1.19x on its FY13 Book value of INR1832. We recommend a BUY on the stock at the current level.

Source : Equity Bulls

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