SBI Q3 net profit seen at ₹4,851 crore, say analysts
In the September quarter, SBI reported a 52% year-on-year jump in net profit to ₹4,574 crore, backed by robust growth in retail loans and lower provisions for bad loans. It had guided for additional covid-19 recasts of ₹13,000 crore till closure of the window on 31 December
MUMBAI: India’s largest lender State Bank of India (SBI) is expected to post a net profit of ₹4,850.5 crore in the three months to December 2020, 13% lower than ₹5,583.36 crore in the same period last year, according to an average of estimates by 15 analysts polled by Bloomberg.
The bank will declare its Q3 FY21 results on Thursday.
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Analysts at Motilal Oswal believe that SBI appears well-positioned to report a strong uptick in earnings as the uncertainty brought about by the pandemic has receded significantly.
"While collection trends have improved to around 97%, restructuring of only up to 1% of loans is expected. Furthermore, legacy issues in the corporate non-performing asset (NPA) cycle are now largely behind, and the bank carries a healthy provision coverage ratio (PCR) of about 88% on corporate NPAs," the report said on 7 January.
Meanwhile, ICICI Direct Research expects loan growth of 5.2% on a year-on-year (y-o-y) basis to ₹23.16 trillion and 10% y-o-y for deposits. It said in a note on 8 January that non-interest income or other income is seen at ₹7,700 crore in the December quarter.
"With cost of deposits stabilising and loan yields also seen moderating, net interest margin (NIM) is seen to be stable. We factor in moderate slippages due to standstill status and loan loss provisions of ₹7,557 crore, with overall provisions at ₹9,900 crore," it said.
In the September quarter of FY21, SBI reported a 52% year-on-year jump in net profit to ₹4,574 crore, backed by robust growth in retail loans and lower provisions for bad loans. The bank had also guided for additional covid-19 recasts of ₹13,000 crore till closure of the window on 31 December.
Shares of SBI on the BSE closed at ₹335.85 on Wednesday, up 0.8% from its previous close.
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