Views on State Bank of India 4QFY2016 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst - Banking, Angel Broking) on SBI 4QFY2016 Results:

"SBI Reported PAT of INR 1263.4 cr which was more or less in line with expectations, however other income has been higher due to exchange gain on repatriation of funds from foreign office to India, in the absence of which the bottom-line could have disappointed. The key to watch during the quarter was asset quality which has further deteriorated and GNPAs went up by 35% QoQ and stood at 6.50% compared to 5.10% in Q3FY16. Net NPAs also went up by 92 bps to 3.81% vs 2.89% QoQ. Gross slippages for the quarter stood at more than INR 30,000 cr which is higher than what the street and we expecting.

However, the good part is that the bank is recognizing the troubled assets and cleaning up the balance sheet. But we believe the cleaning up process should take another one year's time and till then time the provisions were remain high and hence bottom-line will be under pressure. Hence we have a NEUTRAL rating on the stock."

Shares of STATE BANK OF INDIA was last trading in BSE at Rs.200.55 as compared to the previous close of Rs. 197.9. The total number of shares traded during the day was 2657049 in over 29673 trades.

The stock hit an intraday high of Rs. 202.25 and intraday low of 195.8. The net turnover during the day was Rs. 529032958.

Source : Equity Bulls

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