Shares of this PSU bank jumped around 1 percent after they announced signing a Line Of Credit(LOC) worth 70 million euro (about Rs. 630 crores) for solar projects.
With a market capitalisation of Rs. 5,57,476 crores, the shares of State Bank of India started Thursday’s trading session on a higher note at Rs. 626 compared to its previous close of Rs. 619.85. The shares hit a high of Rs. 627.75, gaining around 1 percent and are currently trading at Rs. 624.30 apiece.
Such a positive movement in the stock price was observed, after the company in an exchange filing mentioned that they would be signing a euro 70 million (about Rs. 630 crores) Line of Credit with KfW, a German Development Bank on 14th December 2023 at bank’s IFSC Gift city branch, Ahmedabad. The LoC aims to support Solar photovoltaic (PV) projects in India.
Looking at the company’s financial statement, the revenue increased by around 6 percent from Rs. 1,01,460 crores during the June quarter to Rs. 1,07,391 crores in the September quarter. In addition, the Net Interest Income (NII) earned by the company increased by 1.5 percent from Rs. 38,905 to Rs. 39,500 during the same period. On a contrasting note, the net profits declined by around 13 percent from Rs. 19,094 during Q1 FY24 to Rs. 16,648 during Q2 FY24.
Coming onto the important ratios, the return on equity (RoE) increased from 13.61 percent during FY21-22 to 18.44 percent during FY22-23. Furthermore, the net non-performing assets (NPA) of the company decreased from 1.02 percent to 0.67 percent during the same timeframe. On the other hand, the CASA ratio of the bank declined marginally from 44.52 percent to 42.67 percent during the above-mentioned period.
Headquartered in Mumbai, State Bank of India was incorporated in 1806. The company is an Indian Multinational, Public Sector banking and financial services statutory body. Presently, the bank operates a network of 22,219 branches and 62,617 ATMs across India.
Written By Vaibhav Patil
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