SBI hits three-year high as Q4 profit beats Street

The stock has moved higher by nearly 10% to Rs 2,777, its highest level since May 2011 on the National Stock Exchange

State Bank of India (SBI) has moved higher by nearly 10% to Rs 2,777, its highest level since May 2011, after reporting a better-than-expected net profit of Rs 3,041 for the quarter ended March 31, 2014 (Q4FY14).

Analysts, on an average, had expected net profit of Rs 2,787 crore from the country’s largest state-owned lender.

The bank had reported a profit of Rs 3,299 crore in the same quarter last year.

The bank's net interest income (interest earned minus interest expended) for the reporting quarter rose 16% year-on-year to Rs 12,903 crore from Rs 11,078 crore for Q4 of FY2012-13.

The asset quality of the bank for the quarter improved on a sequential basis.  As proportion to gross and net advances,  the gross and net NPA declined by 20 basis points and 47 basis points respectively.

The gross NPA and net NPA for the quarter ended March 2014 stood at 4.95% and 2.57% respectively.

The stock opened at Rs 2,520 and touched a low of Rs 2,497 on NSE before the announcement of results. A combined 4.78 million shares changed hands on the counter on the NSE and BSE so far.