SBI shares hit 52-week high; up over 4% post healthy earnings

Shares of State Bank of India on Monday rose by over 4 per cent to touch its 52-week high level on the back of the company reporting 31 per cent jump in its net profit in the September quarter and improvement in the asset quality.

SBI's scrip gained 4.17 per cent to Rs 2,905 -- its 52-week high level.

At the National Stock Exchange, it climbed 4.34 per cent to touch its one year peak of Rs 2,908.95.

The stock was the top gainer among the blue-chips on both Sensex and Nifty.

State Bank of India had on Friday reported 31 per cent jump in its net profit at Rs 3,100 crore (Rs 31 billion) in the September quarter, on account of improvement in interest income and tight control on expenses.

The bank had reported a profit after tax of Rs 2,375 crore (Rs 23.75 billion) in the year-ago period.

"Net profit is coming from the improved numbers as our interest income has gone up. Also, our expenses are very well controlled with overall operating expenses going up by 2.23 per cent," SBI Chairman Arundhati Bhattacharya had said.         

Total interest income grew 9.85 per cent to Rs 37,263 crore (Rs 372.63 billion) from Rs 33,922 crore (Rs 339.22 billion) in the review period.

Net interest income increased by 8.36 per cent to Rs 13,275 crore (Rs 132.75 billion) in the quarter from Rs 12,251 crore (Rs 122.51 billion) in the same period last year.

The bank saw improvement in the asset quality with gross non-performing assets ratio at 4.89 per cent as against 5.64 per cent. Net NPA improved to 2.73 per cent from 2.91 per cent in the same period last year.