Stock market today: After the announcement of Q3 results 2024 on Saturday, the State Bank of India (SBI) share price today opened flat facing resistance at ₹655 apiece level. According to stock market experts, SBI reported around a 35% decrease in YoY net profit in Q3FY24, but this is primarily due to a one-time exceptional item totaling ₹7,100 crore.
Stock market experts said that year-on-year profit growth for the first nine months underscores the bank's strong underlying performance. Stock market experts went on to add that the SBI share price is on the cusp of a fresh breakout at ₹655 level. Once the stock breaches this resistance on a closing basis, the Bank Nifty major is expected to become highly bullish.
Speaking on the outcome of SBI Q3 results 2024, Anirudh Garg, Partner and Fund Manager at INVAsset said, "In the third quarter of the 2023-24 financial year, the State Bank of India (SBI) recorded a net profit of ₹9,163 crore, marking a 35% decrease compared to the same quarter in the previous year. This decline was primarily attributed to a one-time exceptional item totaling ₹7,100 crore. Despite the quarterly dip in net profit, the bank exhibited robust performance throughout the initial nine months of FY24, achieving a net profit of ₹40,378 crore. This figure reflects a substantial 20.40% increase from the corresponding period in the prior year when the net profit stood at ₹33,538 crore."
"The noteworthy year-on-year profit growth for the first nine months underscores the bank's strong underlying performance, demonstrating resilience and the ability to manage challenges effectively, despite the setback in the quarterly results due to the exceptional item. This resilience underscores SBI's capability to navigate challenges while sustaining growth over the medium term, showcasing its financial stability and strategic adaptability in navigating dynamic economic conditions," Garg added.
"State Bank of India - the largest PSU bank - reported a surprising set of numbers in Q3FY24, which was not expected from the giant. Although the bank showed a nominal growth in its net interest income, the bank's net profit declined mainly on account of a one-off due to the provisioning of estimated liability of pension," said Shreyansh V Shah, Research Analyst at StoxBox.
On the outlook of SBI shares, Sumeet Bagadia, Executive Director at Choice Broking said, "SBI share price is currently positioned at a crucial juncture in its trading dynamics. With a robust support base at ₹628 levels, near its 20-day Exponential Moving Average (EMA), the stock stands resilient. Trading at approximately ₹652 levels, SBI share price exhibits strength by maintaining levels above key moving averages."
"The charts unveil a minor resistance barrier at 655 levels, a threshold the stock needs to surpass to pave the way for an upward trajectory. A successful breach of this resistance can potentially propel SBIN towards its target price of 680 and beyond. The Relative Strength Index (RSI) at a comfortable 60.35 further bolsters the case for strength in the stock," said Bagadia.
"Those who have SBI shares in their stock portfolio should hold the scrip with a stop loss at ₹620 for the near-term target of ₹680. Those who want to take a fresh position in the scrip can maintain a buy-on-dips strategy for the short-term target of ₹680 maintaining stop loss at ₹628 apiece level," concluded Sumeet Bagadia.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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