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SBI Earnings Preview: Street anticipates NII growth to slow but record quarterly profit
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SBI Earnings Preview: Street anticipates NII growth to slow but record quarterly profit
Nov 4, 2022 10:36 AM

Share Market Live

NSE

India's largest lender, State Bank of India will report its September quarter results on Saturday, November 5.

The street is anticipating the bank's Net Interest Income (NII) growth to be the slowest in five quarters. However, at Rs 9,803 crore, a CNBC-TV18 poll expects the bank's net profit to be the highest ever.

Shares of State Bank of India ended at a 52-week high on Friday ahead of the company's results.

State Bank of India's net interest margin (NIM) is likely to improve marginally year-on-year as well as sequentially.

On the asset quality front, the bank's gross non-performing assets are likely to improve compared to the June quarter. Broking firm CLSA expects gross NPA to be 3.71 percent for the quarter, compared to 3.91 percent in June.

CLSA expects slippages to be worth Rs 5,500 crore. However, Kotak Securities expects slippages to be worth Rs 11,000 crore during the quarter.

Commentary of the management on growth outlook will be noticed closely. CLSA expects loan growth to be 17.5 percent higher than last year and just 2 percent from the June quarter.

During the June quarter, the bank reported a treasury loss of Rs 6,649 crore while deposits declined sequentially for the first time in 22 quarters. Operating profit growth was also the weakest in 15 quarters, which resulted in net profit falling to a six-quarter low.

Shares of State Bank of India have gained 27 percent this year.

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