SBI gains as bank aims to contain fresh slippages in FY 2017

State Bank of India rose 1.64% to Rs 198.75 at 13:04 IST on BSE, extending Friday's gains after the bank's Chairman said in a post-result conference call that bank proposes to contain fresh slippages ratio in the year ending 31 March 2017.

Meanwhile, the S&P BSE Sensex was up 59 points or 0.22% at 26,712.60 On BSE, so far 27.84 lakh shares were traded in the counter as against average daily volume of 26.67 lakh shares in the past one quarter. The stock hit a high of Rs 203.80 and a low of Rs 194.80 so far during the day. The stock had hit a 52-week high of Rs 291.85 on 5 August 2015. The stock had hit a 52-week low of Rs 148.30 on 12 February 2016. The stock had underperformed the market over the past one month till 27 May 2016, falling 0.48% compared with Sensex's 2.26% rise. The scrip, however, outperformed the market in past one quarter, advancing 25.15% as against Sensex's gain of 15.11%.

The large-cap state-run bank has equity capital of Rs 776.28 crore. Face value per share is Re 1.

State Bank of India (SBI) extended gains registered during the previous trading session after the bank's Chairman Arundhati Bhattacharya said in a post-result conference call held on Friday, 27 May 2016, that bank proposes to contain fresh slippages ratio within 2.7% of advances in the year ending 31 March 2017 (FY 2017). The SBI stock surged 6.42% to settle at Rs 195.55 during the previous trading session on Friday, 27 May 2016, shrugging off weak financial performance for Q4 March 2016. SBI has identified about Rs 31000 crore of loans as under special watchlist for FY 2017, which is just 2.1% of overall loan book. Of these watch list accounts, about 70% of loans have more chances of slipping to NPA category. About Rs 11655 crore of watchlist accounts come from restructured advance book, while the sectors contributing to the watch list accounts are power (Rs 4748 crore), iron and steel (Rs 4299 crore), engineering (Rs 3574 crore), oil and gas (Rs 3396 crore), construction (Rs 2608 crore), chemicals (Rs 2326 crore) etc. SBI aims to achieve credit growth of 12-14% in the current financial year, to be driven by retail credit and good quality corporate book.

SBI's net profit fell 66.23% to Rs 1263.81 crore on 10.10% increase in total income to Rs 53526.97 crore in Q4 March 2016 over Q4 March 2015. The result hit the market during trading hours on Friday, 27 May 2016.

The Government of India holds 60.18% stake in State Bank of India as per the shareholding pattern as on 31 March 2016.

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