The third quarter results of the country’s largest state-run bank State Bank of India (SBI) will come tomorrow. The profit of this giant bank, which dominates the banking sector, can increase by 64% to 8500. Earnings from interest can also see an increase, while the asset quality of the bank can also show improvement.The stock has gained about 1.5% in the first week of the results.
Disclosing the forecast data on SBI, Sumit Mehrotra of CNBC-Awaaz said that both profit and interest income of the bank may see an increase. According to estimates, SBI’s profit may increase by 64.4 percent to Rs 8538.7 crore in the third quarter of the financial year 2021-22 on an annual basis. Whereas in the third quarter of last year, the bank’s profit was Rs 5194.2 crore. In the third quarter of this year, the bank’s profit may see a growth of 12 percent on a quarterly basis.
SBI’s interest income (NII) may grow by 6.8 per cent to Rs 30792.8 crore in the third quarter of FY 2021-22 on an annual basis. Whereas in the third quarter of last year, the bank’s NII was Rs 28819.9 crore. In the third quarter of this year, the bank’s profit may see a decline of 1.3 percent on a quarterly basis.
SBI’s NIM is estimated at 2.94% in Q3FY22 as against the NIM of 3.09% in Q2FY22. At the same time, in the previous quarter i.e. Q1FY22, the NIM was 2.92%.
SBI’s Gross NPA is estimated at 4.69% in Q3FY22 while Gross NPA in Q2FY22 is at 4.9%. At the same time, in the previous quarter i.e. Q1FY22, the gross NPA was 5.32%.
SBI’s SLIPPAGES in Q3FY22 are estimated to be Rs.8000 crores as against SLIPPAGES of Rs.4292 crores in Q2FY22. Whereas in the previous quarter i.e. Q1FY22, the SLIPPAGES was Rs 16298 crore.
Brokerages believe that NII growth is expected to be weak on a year-on-year basis and NIMs may see pressure.
Gail’s profit and income both increased, know stock’s view from brokerage houses
According to CLSA’s estimates, the bank’s loan growth can be 6.9% on an annual basis, while the loan growth on a quarterly basis can be seen at 3.6%.
In terms of slippage, CLSA expects the bank’s slippage to be Rs 8000 crore while Kotak Securities expects slippage to be Rs 11000 crore.
The bank’s asset quality may see improvement on the back of good recovery and upgrades. On the other hand, from the asset quality perspective, positive commentary is expected on the retail/corporate loan book of the bank.
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