In continuation to the launch of the SBI Composite Index on Dec. 9, 2014, State Bank of India (SBI) released yearly as well as monthly Composite Index value for the month of February 2015.

The yearly SBI Composite Index for February 2015 inched up to 52.9 (Moderate growth) from 52.1 (Moderate growth) in January 2015, a 2 month high. In contrast, the Monthly Index has slipped from 52.1 (Moderate growth) in January 2015 to 48.3 (Low Decline) in February 2015, a 4 month low. Sharp contraction in the month on month index may be attributed to less number of working days in February compared to January.

However, revival in Automobile sales, Capital goods and Consumer non-durables productions and possible upturn in the credit offtake by large corporates segment highlights possible recovery in the economic activity in coming months. However, on the flip side, consumer durable sales have not yet bottomed out. Bank credit and deposit continues to remain sluggish. Interestingly, growth in credit card outstanding continue to push up credit growth. Contraction in the Monthly index probably drag down the yearly index after a while.

The Index captures two components of the manufacturing cycle namely month-on-month and year-on-year growth on a scale of 0 to 100. Index above 50 implies growth over previous respective period and less than 50 will suggest a contraction over respective period.

Shares of the bank declined Rs 0.25, or 0.08%, to settle at Rs 306.80. The total volume of shares traded was 2,604,026 at the BSE (Monday).