homeearnings NewsSBI Q2 results preview: Net interest income growth expected to be slowest in seven quarters
SBI Q2 results preview: Net interest income growth expected to be slowest in seven quarters
The State Bank of India is set to release its Q2 earnings on November 4th. It's important to pay attention to SBI's net interest margin, especially in light of the recent decline in this metric among other major lenders. ICICI Securities estimates a five basis point decline.
The State Bank of India (SBI) is set to release its Q2 earnings on Saturday, November 4. According to a CNBC-TV18 poll, the year-on-year net interest income (NII) growth may be the slowest in the past seven quarters, with an expected NII growth of approximately 11% year-on-year (YoY) and around 0.3% sequentially.
Profit growth is projected at 5.8% year-on-year with a quarter-on-quarter decline of nearly 70%. Loan growth is anticipated to slow down to approximately 12% year-on-year and 3% quarter-on-quarter, down from the previous quarter's level of about 15-15.50%.
ICICI Securities, on the other hand, is estimating slippages at ₹5,500 crore, which can be compared to the ₹7,900 crore figure in the previous quarter.
Kotak Securities is expecting operating profit growth to be a mere 0.9% year-on-year, with a substantial 15.8% quarter-on-quarter decrease. It's important to note that in the previous quarter, a significant treasury income of about ₹3,800-3,850 crore bolstered the operating profit, so its absence may lead to a decline.
Asset quality is expected to remain stable or even improve, with Motilal Oswal anticipating a 15 to 20 basis point sequential reduction in the gross NPA ratio.
The management's comments regarding growth outlook will be of particular interest.
Shares of SBI, on Friday, November 3, settled at ₹579.15 apiece on the BSE. The stock has remained flat over the past month.
(Edited by : Anshul)
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