State Bank of India shares rise over 1.5% following a robust first quarter that surpasses market expectations, buoyed by increased profits, loan growth, and improved margins, prompting positive broker support.
State Bank of India shares rose after the lender reported a stronger-than-expected first quarter, with profits and core lending income both topping market forecasts. The stock climbed 1.55% to Rs 1,113 on the BSE on Monday, following a 10% year-on-year rise in standalone net profit to Rs 21,121 crore for the April-June period.
According to Moneycontrol, net interest income increased 15% to Rs 46,992 crore, while operating profit advanced 10% to Rs 33,529 crore. The bank’s domestic net interest margin improved to 3%, up 7 basis points from the previous quarter, and its whole-bank margin rose 5 basis points sequentially to 2.86%.
The lender also reported that its total business crossed Rs 110 lakh crore during the quarter, supported by deposits of more than Rs 60 lakh crore and advances above Rs 50 lakh crore. Asset quality remained firm, with gross non-performing assets at 1.47% and net NPAs at 0.38%.
Brokerages turned more constructive after the results, with firms including Nuvama, Nomura and Morgan Stanley publishing fresh views on the stock. Their calls came as investors focused on SBI’s steady loan growth, improved margins and cleaner balance sheet, all of which helped the results beat Street estimates.
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