Shares in State Bank of India surged 8 per cent, as the bank reported a sharp drop in slippages and asset quality dropped only marginally.
Asset quality at the bank was marginally higher. Gross non performing asset rose to 6.94 per cent, from 6.5 per cent, while net NPA rose to 4.05 per cent, from 3.98 per cent.
SBI shares surged largely on the back of improved slippages and rallied 8 per cent at Rs 247 on the NSE. This is the best Q1 2016-17 performance in terms of improvement in slippages from a large public sector bank.
Most of the larger and small sized public sector banks alike have reported a dismal set of quarterly numbers. Bank of Baroda, Punjab National Bank, Union Bank of India and even the smaller banks like Andhra Bank and Syndicate Bank have reported a dismal set of results for the quarter ending June 30, 2106.
Against this backdrop the results of SBI can be considered as a big positive. Analysts see the stock rising even further in the coming days.