Views on State Bank of India 1QFY2017 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking) on State Bank of India 1QFY2017 Results:

Positive surprise by SBI, seems will continue

"SBI's 1QFY17 asset quality has surprised on the positive side. Lower than expected slippages have helped in reporting better than expected bottom-line. Slippages of INR 8790 cr during the quarters was lower than our and street's expectations and this indicates a large part of the troubled loans has been accounted as NPAs. While one cannot generalize that the overall PSU banks will start seeing revival, it is fair to assume with the current set of results that SBI's management has been able to sail through tough times and asset quality could see improvement from here on. With improvement in visibility of earnings we feel the stock could see further upside in the near to medium term. Backed by positive developments on asset quality we upgrade the rating on the stock to ACCUMULATE."

Shares of STATE BANK OF INDIA was last trading in BSE at Rs.243.2 as compared to the previous close of Rs. 226.95. The total number of shares traded during the day was 13529278 in over 79636 trades.

The stock hit an intraday high of Rs. 247.7 and intraday low of 224.4. The net turnover during the day was Rs. 3254729121.

Source : Equity Bulls

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