What will be the SBI Share Tomorrow
State Bank of India is the largest bank in the country and is also a Fortune 500 company. The State-owned bank is involved in a non-profit activity of community services banking. The branches and administrative office of the bank sponsor and participate in a large number of welfare and social activities. It offers services such as personal banking, NRI services, agricultural and rural banking, large credits to corporate companies as well as to Small and Medium Enterprises (SMEs). For banking, it provides services such as domestic treasury, brokerage services, ATM services, among others.
SBI stocks are available for trading in the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE). Before we understand and know ‘What will be the SBI share price tomorrow?’, let’s review the financial performance of SBI.
Recent Financial Performance of SBI
SBI Q1 FY19 Results
- The bank posted a net loss of Rs.4,876 crore for the quarter ending 30 June 2018. The loss was attributed to provisions as it doubled during the said quarter. This is also the third straight loss reported by the bank in terms of assets.
- It reported provisions and contingencies of Rs.19,228.26 crore as against Rs.28,096.07 crore for the quarter ending 31 March 2018.
- However, its net interest income rose from Rs.17,606 crore, reported in the year-ago period, to Rs.21,798 crore.
- Interest earned for the said period inclined by 7.1% to stand at Rs.58,813.18 crore from Rs.54,905.40 crore posted during the same quarter last year.
- The gross non-performing assets as percentage dropped to 10.69% for the said quarter from 10.91% in the previous quarter and 9.97% during the same period last fiscal.
- Net non-performing assets decreased to 5.29% from 5.73% in the previous quarter and 5.97% in the same period last year.
- In a filing with BSE, the bank said that it has made provisions of Rs.2,655.4 crore till June 2018 towards arrears of wages.
SBI FY 2017-18 Financial Results
During the quarter ending 31 March 2018, SBI posted a net loss of Rs.7,718 crore as provisions for bad loans increased on rising defaults as well as a decline in the profitability from its securities trading business. However, the bank projected a better picture ahead amid signs of resolution of bad loans under the newly created Insolvency and Bankruptcy Code. Despite a loss in the Q4 FY18, SBI shares rose nearly 4% immediately amid expectations that the worst was over for India’s largest lender.
SBI Share Price Trend in 2018
- The SBI stock price on the 1st day of trading in January in the NSE stood at Rs.307.10 and remained stable until March 2018. The scrip dropped significantly in the month of March, down by more than 70 points to be valued at Rs.234.80 on the 23rd of March.
- The drop in the stock price of SBI was attributed to the loss incurred by the bank for the two consecutive quarters amid provisions towards bad loans.
- In August, the scrip rose to touch Rs.317.40 as the bank forecasted a better fiscal amid expectations that the worst is over for the country’s largest lender.
Why invest in SBI shares?
- The share price of the bank touched a new high of Rs.351 in the month of October 2018, up from Rs.151 before.
- In August, despite posting losses, the scrip touched a record high of over Rs.300 compared to other months of the year, when the stock price didn’t move above Rs.275. The rise in the stock price was mainly due to expectations that the worst is over for the bank and the FY 2019 looked bright for the lender.
- The net interest income rose from Rs.18,688 crore in Q3 FY18 to Rs.19,974 crore in Q4 FY18. Also, other income increased from Rs.8,084 crore in the third quarter to Rs.12,495 crore in the last quarter of the financial year 2018.
- The lender’s income from new businesses inclined by 9%, while income derived from cross-selling rose by 85%.
- The second largest IPO in India was that of SBI Life Insurance IPO which reflects the faith the Indian investors have in the SBI Group.
- The Gross Non-Performing Assets (NPA), in terms of percentage, for the quarter ending 30 June 2018, decreased to 10.69% as against the previous quarter.
SBI Share Price Forecast
The movement prediction of SBI shares appears to be bullish. The stock began rising as soon as it opened for trading in the stock market. This usually happens when there’s a positive sentiment, making it an attractive buy. There’s a great chance that this upward trend will continue on 4 October 2018. The scrip has been trading above weekly resistance and can slip downwards only if it trades below Rs.269.75. On 1 October 2018, the stock opened for trading at Rs.265.85 with highs of Rs.275.20 and lows of Rs.264.10. It closed for trading at Rs.273.85, up by 3.15% and this trend is expected to continue tomorrow as well. The SBI share price prediction for tomorrow is expected to be slightly above 3%.
The stock price of SBI took a hit in the last three quarters amid reported losses due to provisions towards bad loans. However, the trend in the stock price of the bank looks positive as the country’s largest lender has decided to halve its bad loans through provisions.
The SBI stocks continue to be one of the top preferred Public Sector Undertakings (PSUs) stock attributed to its robust CASA franchise. The bank is aggressively working towards resolving bad loans by recovering bad loans through several initiatives. Investing in SBI stocks on a long-term will yield good results especially through its life insurance segment. That said, investors are expected to perform their research before investing in stocks as they are subject to terms and conditions. Investors can also refer to BankBazaar for more such information.