Shares of State Bank of India on Friday zoomed nearly 9 per cent after the company posted over four-fold jump in standalone net profit for March 2020 quarter. The stock jumped 7.90 per cent to close at Rs 187.80 on the BSE. During the trade, it advanced 9 per cent to Rs 189.80. On the NSE, it rose sharply by 8.73 per cent to settle at Rs 189.25.
The company's market valuation rose by Rs 12,272.2 crore to Rs 1,67,604.20 crore on the BSE. In traded volume terms, 107.14 lakh shares were traded on the BSE and over 20 crore on the NSE.
SBI was the top gainer in the Sensex pack. State Bank of India on Friday posted over four-fold jump in standalone net profit at Rs 3,581 crore for March 2020 quarter mainly on account of stake sale in its credit card subsidiary and fall in bad loans.
The country's largest lender had clocked a net profit of Rs 838.44 crore in January-March period of 2018-19.
However, the profit during the fourth quarter of 2019-20 was down sequentially.The profit in December quarter was Rs 5,583.36 crore, SBI said in a regulatory filing.
"Bank registered a net profit of Rs 3,581 crore in Q4FY20, an increase of 327 per cent over Q4FY19," it said.
The stake sale in SBI Cards and Payment Services and SBI Life Insurance Company helped the bank record its highest ever net profit in 2019-20.
On asset quality front,the bank showed improvement with gross non performing assets (NPAs) falling to 6.15 per cent of the gross advances as on March 31, 2020 as against 7.53 per cent by the year-ago same period.
Net NPAs or bad loans too were trimmed to 2.23 per cent from 3.01 per cent.