Mumbai: State Bank of India's shares Tuesday fell by nearly 5 percent, wiping out Rs 10,441 crore from its market valuation, after the company saw increase in net non-performing assets on sequential basis in the June quarter.
The blue-chip stock dipped 4.87 percent to settle at Rs 269.30 on BSE. During the day, it plunged 5.24 percent to Rs 268.25.
At the NSE, its shares fell by 4.93 percent to Rs 268.80.
Following the decline in the stock, the company's market valuation went down by Rs 10,440.76 crore to Rs 2,03,758.24 crore.
On the volume front, 51.34 lakh shares of the company changed hands at BSE and over three crore shares were traded at the NSE during the day.
Gaurav Jain Director Hem Securities said: "Disappointing income posted by SBI hurts the hopes of the street."
State Bank of India today reported a 5.9 percent increase in net profit at Rs 4,713.57 crore for the first quarter ended June on the back of a decline in bad loans.
The country's largest bank registered a consolidated nets profit of Rs 4,448.15 crore in the same quarter last year.
Net NPAs of the bank declined to Rs 28,669.14 crore (2.24 percent) at the end of the first quarter, against Rs 31,883.80 crore (2.66 percent) in the year-ago period.
However, on sequential basis it rose to 2.24 percent from 2.12 percent in March quarter.
Total income rose to Rs 62,927.46 crore from Rs 60,620.93 crore in April-June of 2014-15.
The bank's provisions for bad loans fell to Rs 3,358.58 crore as against Rs 3,903.41 crore in the year-ago period.
At the same time, its gross non-performing assets (NPAs) dropped to 4.29 percent of total advances at the end of June, against 4.90 percent a year ago.
On a standalone basis, the bank's net profit increased by 10.2 percent to Rs 3,692.43 crore for the quarter under review as against Rs 3,349.08 crore a year ago.
Total income was up at Rs 44,730.87 crore during the quarter, against Rs 40,739.21 crore in the year-ago period.
In value terms, SBI's gross NPAs slumped to Rs 56,420.77 crore (4.29 percent of loans) during the June quarter, from Rs 60,434.24 crore (4.90 percent) on a yoy basis.
