Heavyweight that lost Rs 46,000 cr mkt cap in 1 month

Heavyweight that lost Rs 46,000 cr mkt cap in 1 month

State Bank of India(SBI) was down 4.33% or Rs 121.60 to end at Rs 2,686.20. It touched an intraday high of Rs 2,820 and an intraday low of Rs 2,667.65. There were pending buy orders of 487 shares, with no sellers available. It was trading with volumes of 1,265,518 shares on the BSE.The company touched its 52-week high of Rs 3,515 and 52-week low of Rs 1,934.40 on 08 Nov, 2010 and 05 Feb, 2010, respectively. Its market capitalisation stands at Rs 170,573.19 crore. However, it has lost Rs 46,000 crore of its market cap in the last one month.

A month back SBI reported flat growth in net profit, well below street estimates, largely on account of higher provisioning and bad debt acquired from the State Bank of Indore merger. For the quarter ended September 2010, the country's largest lender posted a 0.4% increase in net profit to Rs 2,501 crore against Rs 2,490 crore it posted in the same period last year.

The bank accounted for higher provisioning of Rs 300 crore for gratuity and Rs 854 crore in bad debt that the acquired post the merger with State Bank of Indore. The bank is likely to continue making similar provisions in the quarters ahead to comply with relevant norms.

However, bad debts remain a concern for the bank with net non performing assets rising to 3.35%. For the quarter ended September, the bank closed at its highest ever NPA level of Rs 23,205 crore.

Duringthe quarter, restructured loans worth Rs 661 crore slipped into the non performing asset category. The slippage ratio for restructured loans at September-end stood at 14.5%, which the bank expects to rise to 17% in the quarters ahead. The bank's deteriorating asset quality hence remains a concern for investors.

While the outlook on growth remains grim, the bank continues to see robust demand. It expects credit growth of 18% for the fiscal. Deposits in the quarter grew over 10.6%, driven by CASA growth of 27.7% percent and retail growth of almost 7.5%. The SBI home loan portfolio grew 27.17% over the same period last year, while auto loans grew close to 52%.

POST COMMENT

Female Libido Enhancers For A Better Sex Life Female Libido: Factors and Supplements That Prove To Be Helpful Hersolution Enhancement Pills: Female Libido Enhancement Pills Lack Of Sex Drive In Women? Get The Right Solution What number of Times Should Sex Be Done So As To Become Pregnant? How To Apologize - Ways To Get Your Ex Back For Good Men Fertility Problems, What Factor lead to Poor Sperm Quality How To Stop A Divorce - Ways To Get Your Ex Back Black Shiny Zentai Dress Sexy Zentai How to Satisfy a Black Woman Sexually – Discover The Simple Strategy to Make You Last Longer in Bed Great Sex by Changing Positions Improving Your Sex Life: How to Be Spontaneous Why women reach orgasm easily and believe to have better sex with rich men