State Bank of India's Q4FY16 standalone net profit declines 66% yoy to Rs.1,263.81 crore : Estimates Mixed

The bank’s standalone NII stood at Rs. 15,290.76 crore, up 3.94% yoy and 12.38% qoq.

May 27, 2016 1:24 IST | India Infoline News Service
State Bank of India, SBI
State Bank of India, reported standalone net profit of Rs.1,263.81 crore for the quarter ended March 31, 2016, registering decline of 66.23% yoy, but growth of 13.31% qoq. It's Net Interest Income (NII) for the quarter stood at Rs. 15,290.76 crore, clocking growth of 3.94% yoy and 12.38% qoq.

Gross non-performing assets (GNPA) for the quarter stood at 6.5% up 225 bps yoy and 140 bps qoq. Provisions at Rs.13,174.05crore were higher 89.74% yoy and 65.72% qoq.

For the year ended March 31, 2016, the bank reported net profit of Rs. 9,950.65 crore, witnessing decline of 24.05% yoy. It's NII for the current period of Rs. 56,881.82 crore was up  3.39% yoy.

Provisions during the period at Rs. 29,483.75 crore were higher by 45.79% yoy.

State Bank of India Q4 FY16– ‘Mixed Bag’:

SBI results were a mixed bag with slippages coming slightly higher than expected and NIMs being resilient despite this. NII was up 4% yoy in spite of the sharp deterioration in asset quality in the past 12 months. Impacted by higher delinquencies, Gross NPL rose to 6.5% v/s 5.1% qoq. LLP stood at more than 12000cr as compared to our estimate of ~8300cr. While PCR fell qoq, it was maintained at a reasonable level of 61%. Net NPLs at 3.8% still remains one of the lowest among PSU Banks. The impact of higher provisioning and opex on the bottom-line was cushioned by one-of repatriation of funds from foreign offices. The bank also utilized Rs. 1000cr worth of counter cyclical provision sitting on the balance sheet.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 15290.76
Standalone Net Profit 1263.81 1571 [19.55]

Standalone EPS for the quarter stood at Rs. 6.50.

Bloomberg estimated the company’s consolidated net profit at Rs. 28,086 crore.

Corporate Action: State Bank of India ( SBI) has declared a dividend of Rs. 2.60 per share (260%) for the Financial year ended March 31, 2016. The date of payment of the Dividend is fixed on June 22, 2016 and the dividend warrants will be dispatched before the date of payment, which will be payable, in India, at par at all branches of State Bank of India, irrespective of the amount.

Stock Commentary:

State Bank of India is currently trading at Rs. 185.15, up by 1.4 points or 0.76% from its previous closing of Rs. 183.75 on the BSE.

The scrip opened at Rs. 185 and has touched a high and low of Rs. 190 and Rs. 184.05 respectively. So far 38318402(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 142641.03 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 291.85 on 05-Aug-2015 and a 52 week low of Rs. 148.3 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs. 184.9 and Rs. 166.6 respectively.

The promoters holding in the company stood at 60.18 % while Institutions and Non-Institutions held 27.88 % and 10.07 % respectively.

The stock is currently trading above its 200 DMA.

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