REVEALED! Why SBI share price skyrocketed - All you need to know

Q2FY20 Effect: The State Bank of India or SBI share price skyrocketed over 7 per cent in the intraday trade after the Closing Bell. According to the stock market experts, a good number of share market investors had taken short position in the SBI shares ahead of the second quarter results of the banking stock was covered today and after the strong quarterly results of the SBI were made public, the banking shares witnessed heavy fresh buying that led to skyrocketing of the SBI share price to the tune of 7.19 per cent.

Speaking on the reason for rise in SBI share price; Prakash Pandey, MD & CEO at Plutus Advisors said, "The rise of over 7 per cent in the SBI share price can be attributed to two reasons — on yesterday and today morning, stock market investors had taken short position in the SBI counter which got covered ahead of the second-quarter results announcement and strong quarterly numbers being announced by SBI triggered fresh buying in the banking counter that led to fresh escalation in the banking counter."

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In Q2FY20 results, the State Bank of India reported that its Net Profit increased to Rs 3,012 Crore during Q2FY20 from Rs 945 Cr during Q2FY19, an increase of 219 per cent YoY. It's Net Interest Income (NII) increased to Rs 24,600 Crores in Q2FY20 from Rs 20,906 Crores in Q2FY19, an increase of 17.67 per cent YoY. SBI's written statement further informed that the largest Indian commercial bank's Domestic Credit Growth at 8.43 per cent YoY was mainly driven by Retail-Personal Advances (18.90 per cent YoY). SBI also reported improvement in its NPA. In its Q2FY20 report, SBI reported that it's Gross NPA Ratio at 7.19 per cent went down 276 bps YoY as well as 34 bps sequentially. In absolute terms also, SBI's Gross NPA declined both YoY as well as sequentially.