State Bank of India reports positive financial results for Q2 2024, advised to hold stocks.

State Bank of India, one of the largest public banks in India, has recently declared its financial results for the quarter ending September 2024. The stock call for the bank by MarketsMOJO is 'Hold'.

According to the financials, the bank has shown positive performance in the second quarter of the fiscal year 2024-25. The score has fallen from 9 to 7 in the last three months, indicating a slight decline in performance.

However, there are several factors that are working in favor of State Bank of India. The bank has maintained a low Gross NPA (non-performing assets) of 2.13%, which has been decreasing each quarter for the past five quarters. This shows that the proportion of stressed loans given by the bank is also decreasing.

Moreover, the bank has seen a growth in its interest earned, with the highest amount of Rs 113,870.56 crore in the last five quarters. This indicates a positive trend in sales for the near future. Additionally, the company has been consistently distributing higher dividends from its profits, with the highest dividend per share (DPS) of Rs 13.70 in the last five years.

The bank's profit after tax (PAT) has also shown a growth of 27.9% year on year (YoY) at Rs 18,331.44 crore in the September 2024 quarter. The net NPA has also decreased to 0.53%, indicating a decrease in stressed loans.

However, there are some areas that need improvement for State Bank of India. The non-operating income for the quarter is 61.60% of the profit before tax (PBT), which is a high percentage. This suggests that the bank's income from non-business activities is not sustainable in the long run.

Overall, State Bank of India has shown positive financial results for the quarter ending September 2024, with some areas that need improvement. Investors are advised to hold their stocks in the bank, as recommended by MarketsMOJO.