Shares of State Bank of India (SBI) slipped after its Q1 FY13 results showed higher sequential increase in its Gross and Net NPAs.
Gross NPAs for Q1 FY13 stood at 4.99% vs 4.44% in the previous quarter while net NPAs stood at 2.22% vs. 1.82% QoQ.
Gross NPAs in absolute terms stood at Rs. 471.56bn in Q1 FY13 while Net NPAs in absolute terms stood at Rs. 203.21bn vs Rs. 158.18bn QoQ.
NPA provisions stood at Rs. 27.9bn in Q1 FY13 while the total provisions were at Rs. 24.56.
The provision Coverage Ratio (PCR) as on June 30 stood at 64.3%.
At 2:33 pm (IST), the SBI stock ended at Rs 1,887, down Rs 84 or ~4% from the last close. The stock hit a day's high of Rs 1,994 and a day's low of Rs 1,877.
Total traded quantity on the counter stood at over 19 lakh shares as against a two-week average of 6.7 lakh shares.
Reports stated that of the 14 bank stocks in the BSE Bank index, only Kotak Mahindra Bank was in the green, while SBI was the biggest loser in terms of value.
The BSE Banking index was down 1% each on BSE and NSE. The PSU Bank index on the NSE was down almost 3%.
SBI has posted a 137% jump in net profit at Rs 3,751.56 crore in the April-June quarter against Rs 1,583.55 crore in the year-ago period.
India’s biggest bank posted a 17% jump in total income at Rs 32,415.49 crore versus Rs 27,731.67 crore in the first quarter of FY12.
The stock was also in focus after UBS downgraded it to "sell" from "buy", saying that a weak monsoon would add to its already high non-performing loans.
UBS expects SBI's margins to decline due to rising cost of funds and potential cuts in the lending rate.
UBS lowered its FY13 and FY14 earnings forecasts by 13%, while reducing its 12-month price target by 30% to Rs 1,800, in a note released late on Thursday.
SBI stock slumped 4.5% to Rs 1,968.75 on Thursday, its biggest daily percentage fall since February 22, on speculation that the bank could report disappointing earnings for the April to June quarter.