State Bank of India (SBI) shares opened the day's trading on a positive note and rose to Rs 622.70 before paring some of the gains on profit-booking. The shares ended the day at Rs 613.75, up 3.37 per cent from its previous close.
In the broader market, the benchmark index, BSE Sensex rose 0.39 percent to 61,185.15 points at close of trade on Monday,
Analysts attributed the jump in SBI share price to the bank reporting its highest-ever quarterly profit at Rs 13,265 crore for the July-September period of 2021-22.
SBI's record profit came on the back of strong growth in loan book, higher interest income, and lower provisions for bad loans.
The country' largest bank reported a total income of Rs 88,734 crore during the period under review, up from Rs 77,689.09 crore in the July-September quarter of the previous financial year.
The net interest income (NII), which is the difference between the interest earned from loans extended to customers and the interest paid to deposits, increased by 13 per cent to Rs 35,183 crore .
Bad loans declined to 3.52 per cent of the gross advances, which is seen as a healthy trend.
Kotak Institutional Equities in a note said: "We maintain 'Buy' .... We have seen a strong re-rating of the bank in recent quarters. Earnings upgrades, led by lower credit costs, have given comfort to this re-rating."