SBI's Q3 Financial Results Show Mixed Performance, Stock Call 'Hold' by MarketsMOJO

State Bank of India, one of the largest public banks in India, recently declared its financial results for the quarter ending December 2023. According to MarketsMOJO, a leading financial analysis platform, the stock call for SBI is 'Hold'.

The bank's financial performance for the quarter has been relatively flat, with a score of 2 out of 10, a decrease from the previous quarter. However, there are some positive aspects to note from the financials. SBI has managed to maintain a low Gross NPA (non-performing assets) ratio of 2.42%, which has been decreasing each quarter for the past five quarters. This indicates that the proportion of stressed loans given by the bank is also decreasing.

Another positive aspect is the bank's interest earned, which has been consistently growing each quarter for the past five quarters and is at its highest at Rs 106,733.78 crore. The near-term sales trend for SBI is also positive. Additionally, the bank's Net NPA ratio is at its lowest in the past five quarters, indicating a decrease in stressed loans.

However, there are some areas of concern in SBI's financials. The Profit Before Tax (PBT) has fallen by -86.37% Year on Year (YoY) to Rs 1,089.33 crore. The Profit After Tax (PAT) has also decreased by -35.5% YoY to Rs 9,163.96 crore. The PBT trend in the near term is negative, which is a cause for concern. The company's income from non-business activities is also high, at 91.32% of PBT, which is not a sustainable business model.

Furthermore, the bank's earnings per share (EPS) have been consistently declining and are at their lowest in the past five quarters at Rs 10.27. This indicates a decline in profitability and lower earnings for shareholders. The Capital Adequacy Ratio (CAR) is also at its lowest in the past five quarters, which means that the bank's capital base is deteriorating in comparison to its risk assets.

Overall, SBI's financial results for the quarter ending December 2023 have a mix of positive and negative aspects. Investors are advised to hold their position in the stock, as recommended by MarketsMOJO.