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State Bank of India shares plunged on wider-than-expected Q1 loss. The stock plunged as much as 4.85 per cent to Rs 301.10 as the country's biggest lender posted its third straight quarterly loss.
After opening a tad up at Rs 317.70 against the previous close of Rs 316.45, the stock touched intraday high of Rs 325.85 and a low of Rs 301.10 on the BSE. On the NSE, the stock touched intraday high of Rs 326.40 and a low of Rs 300.50.
SBI has incurred a net loss of Rs. 4,876 crorer in the first quarter of this fiscal against a net profit of Rs 2,006 crore in the year-ago quarter.
The net loss is largely attributable to lower trading income and significant MTM losses due to hardening of bond yields and higher provision on account of wage revision and enhancement in gratuity ceiling.
SBI shares turned slightly higher followings results, but immediately reversed course. The slippage was not as bad as market was expecting - two Mumbai-based analysts said. Analysts were expecting Rs 10,000 crore in slippages, but the company has only reported Rs 9,984 crore.
Provision coverage ratio has also improved which is a good thing in the long run, one of the analysts said. Up to Thursday's close, SBI shares had risen 2.4 per cent YTD.
(With inputs from Reuters)
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