SBI shares rise after record profit announcement

SBI shares rise after record profit announcement

SBI headquarters in Mumbai; the bank’s shares climbed following a record quarterly profit report.

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State Bank of India (SBI) saw its share price increase by more than 1% today, building on gains from the previous session following impressive fourth-quarter financial results. In this quarter, SBI reported its highest-ever quarterly net profit of ₹20,698 crore,  a 24% increase from ₹16,694.5 crore in the same quarter last year. The bank also expects its lending to grow by 14-16% this year.

SBI, the State Bank of India, has shown improvement in its financial health with a significant decrease in bad loans. The bank’s Gross Non-Performing Assets (NPA) fell by 2.9%, and Net NPA dropped by 6.1% compared to the previous quarter. Financial analysts at Emkay Global are optimistic about SBI’s performance and prospects. They have maintained a ‘Buy’ rating on SBI shares and increased their price target for the stock from ₹750 to ₹950. Emkay Global highlighted that SBI has had a strong all-around show in Q4 with robust credit growth at 16% year-over-year, healthy margins at 3.3%, and a strong 14% profit growth beyond expectations.

Another brokerage, Motilal Oswal, also praised SBI for its steady revenue growth and strong management of assets and expenses. They forecast that SBI will achieve a Return on Assets (ROA) of 1.1% and a Return on Equity (ROE) of 18.5% by 2026. Motilal Oswal maintained a ‘Buy’ rating on the stock and raised its target price to ₹925 per share.

The continued positive feedback from financial analysts and SBI’s strong quarterly results are key drivers behind the rising confidence in the bank’s stock among investors.