The largest lender, State Bank Of India released its Q2 results, and as expected it reported a 28% year-to-year profit, Rs 18,331.4, highlighting its net profit for the September quarter. SBI reported only Rs 14,330.02 crore during the same period last year. The Net Interest Income (NIl) has also plunged to 5.4% at Rs 41,620 crore. This year’s NII is much higher than Rs 39,500 crore, recorded a year ago.

SBI’s operating profit was Rs 29,294 crore in the July-September 2024 quarter, higher than Rs19,417 crore in the same period last year. Still, its domestic net interest margin edged down, declining to 3.27% from 3.43% in the same for FY23.

The Key Highlights From SBI’s Q2 Are:

• Net Interest Margin (NIM): NIM has Reduced by 15 basis points (bps) as compared to the same quarter in FY23. It is also reduced by 8 bps compared to the previous quarter. According to the presentation by SBI, NIM for the reporting quarter stood at 3.14%, down from 3.22% in the previous quarter and 3.29% a year ago.
• Domestic NIM: Fell to 3.27% in the July-September 2024 quarter. it was down from 3.35% in the April-June 2024 quarter and 3.43% in the July-September 2023 quarter.
• Board Approval for Fund Raising: SBI’s board approved raising Rs20,000 crore through long-term bonds. The funds will be raised via a public issue or private placement during FY25.

SBI Shares Trading In Red On The Day Of Q2 Announcement:

SBI’s shares were trading 10% higher than their value from the past month, but ahead of the Q2 results announcement, State Bank of India (SBI) stock declined on the last trading day and ahead of the Q2 results release. The stock opened at Rs 860 and closed at Rs 843.25, showing a decline in the morning. It rose again to the high of the day at Rs 863.65 and slipped to its lowest at Rs 834.30. Investors witness a minor pullback in SBI’s performance for the day.

In a report, Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One stated that SBI share prices have reacted to the result announcement and are down around 1.5%. According to this, the stocks of SBI were experiencing a strong bullish trend.