5 Minutes Read
SBI Q4 results preview: Net profit may decline by over 20% but analysts optimistic on asset quality
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
Listen to the Article (6 Minutes)
Summary
Analysts predict that Net Interest Margin (NIM) may face pressure both year-on-year and quarter-on-quarter, and operating expenses are likely to remain high, potentially affecting operating profits.
State Bank of India (SBI) will announce its results for the fourth quarter of financial year 2024 on Thursday (May 9). According to a poll conducted by CNBC-TV18, the net profit of the bank may experience a decline of 21.6% compared to the same period last year.
Although there could be an increase of 42.8% in net profit when compared quarter-on-quarter (QoQ), the poll said.
Key financial indicators suggest that while the Net Interest Income (NII) is expected to see a rise to ₹40,887.5 crore from the previous quarter and a slight increase compared to the same period last year, Profit After Tax (PAT) is projected to decrease year-on-year to ₹13,081.9 crore.
Several critical aspects of the bank’s performance will be closely monitored.
These include the anticipation that deposit growth may trail behind system growth, while advances growth is expected to maintain its strength.
Analysts predict that Net Interest Margin (NIM) may face pressure both year-on-year and quarter-on-quarter, and operating expenses are likely to remain high, potentially affecting operating profits.
Stable slippages are predicted quarter-on-quarter, while recovery and upgrades are forecasted to be subdued.
Asset quality is expected to either stabilise or improve.
Management commentary on growth, unsecured loans, and NIM outlook will be closely scrutinised.
Analysts at Motilal Oswal anticipate a positive trend for gross non-performing assets (NPAs), predicting an improvement to 2.3% in Q4FY24 from 2.8% in Q3FY24.
Similarly, a decrease in net NPAs is expected to 0.6% in Q4FY24 from 0.7% in the year-ago period.
Throughout the year, SBI shares have seen a growth of over 27% and have outperformed the Nifty 50 index, which recorded only marginal gains of 2%.
Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout
3 Mins Read
Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter
Daily Newsletter
