Mumbai: Shares of State Bank of India Friday surged over 8 percent, adding Rs 16,910.27 crore to its market valuation, after the company's net profit in December quarter rose by 30 percent.
Improvement in asset quality also helped the rally in the stock.
After climbing 8.26 percent to Rs 307.90 in intra-day trade on the BSE, shares of SBI finally ended at Rs 307.05, up 7.96 percent from its previous close on the BSE.
On the NSE, it zoomed 8.23 percent to settle at Rs 307.70.
Tracking the steep rally in the stock, the company's market value surged Rs 16,910.27 crore to Rs 2,29,235.27 crore.
The stock was the top gainer among the blue-chip scrips on both the Sensex and Nifty.
On the volume front, 85.70 lakh shares of the company changed hands on the BSE and over 7 crore shares were traded on the NSE during the day.
Improvement in asset quality and high interest income pushed State Bank of India's net profit in December quarter by 30 percent to Rs 2,910 crore.
The bank had reported a net profit of Rs 2,234 crore in the October-December quarter of previous fiscal, SBI said in a statement.
The gross non-performing assets (NPAs) as a percentage of total advances came down to 4.90 percent at the end of third quarter from 5.73 percent in the year-ago period while net NPAs stood at 2.80 percent.
During the quarter, the net interest income increased by 9.20 percent to Rs 13,777 crore as against Rs 12,616 crore in the October-December period of last fiscal.
However, the bank has increased its provisioning for bad loans to Rs 5,235 crore as against Rs 4,149 crore a year earlier, an increase of 26 percent.
Non-interest income too rose to Rs 5,238 crore at the end of December, up 24.27 percent over the year-ago period.
Total income increased to Rs 43,784 crore during the three month period, up from Rs 39,068 crore in the corresponding period of 2013-14 fiscal.
On a consolidated basis, the bank's net profit increased 35 percent to Rs 3,828 crore for the quarter ended December, against Rs 2,839 crore in the year-ago period.
Meanwhile, in the broader market the BSE benchmark Sensex ended at 29,094.93, up 289.83 points.
