SBI shares zoom on 74% surge in Q2 net profit; analysts raise targets, estimates
Investors lapped up shares of State Bank of India (SBI) on November 7 after the company reported a strong, all-around performance for the quarter ended September 2022, leading to earnings well above what analysts had estimated.
The state-owned lender said its net profit surged 74 percent from a year earlier on improved asset quality and healthy loan growth. Its net interest income rose 12.83 percent to Rs 35,183 crore for the reported quarter, keeping with the improving trend of the previous two quarters.
Credit growth during the quarter was remarkable, beating even some of the top private banks. The largest lender of the country said the loan growth of over 20 percent year-on-year lifted core interest income and also operating profit growth.
Analysts at HDFC Securities underlined that net interest margin (NIM) reflation was sharper than expected at 3.2 percent (a rise of 15 bps sequentially) and is expected to improve further in the near term, with full MCLR impact yet to play out.Read More
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