SBI's strong Q2 rubs off positively on other PSBs; stock rises over 3%

While the Rs 9.4 bn net profit was supported by an exceptional income of Rs 15 bn, advances grew 9.3% and asset quality improved

State Bank of India’s (SBI’s) July-September 2018 quarter (second quarter, or Q2) results were not only better than expected, but also suggest that major problems pertaining to asset quality or non-performing loans (NPAs) are behind. This also helped improve investors’ confidence in other public sector banks, which have been facing asset quality and growth issues. With this, analysts believe the major pain is behind for SBI. This could lead to more gains for the stock.

Not surprising then, SBI and the Nifty PSU Bank index ended with 3.4 per cent and 2.9 per cent gains on Monday, against 0.27 per