arrow-left

Q3FY23 Preview: State Bank of India: NII seen at Rs 372.1 billion, PAT at Rs 134.7 billion

  • 31 Jan, 2023 |
  • 12:30 PM
  • Good show expected across loan growth, margins and asset quality

Result date: 3rd February, 2023

Recommendation: Buy

Target price: Rs 750

State Bank of India (SBI) is likely to post loan growth of 19% over the year-ago quarter and ~3.6% sequentially, believe analysts at IIFL Securities. They expect 21% year-on-year growth in Net Interest Income (NII) of the bank.

SBI should post sequential improvement in Net Interest Margins. Pre-provisioning Operating Profit (PPOP) is likely to grow 19% over the year-ago quarter, reflecting strong NII growth.

Slippages ratio in the quarter should remain <1% annualized, and analysts at IIFL Securities build in credit cost of ~0.5% on an annualized basis.

Profit After Tax (PAT) could grow 60%, partly due to halving of provisions over the year-ago quarter. 

Important management insights to watch out for:

  • Trend in credit demand across segments
  • Operating expense, cost of funds and margin drivers
  • Traction in deposits
Rs Billion

December 2022 estimates

YoY change

QoQ change

Net Interest Income (NII)

372.1

21%

6%

Total Income

468.9

19%

6%

PPOP

220.0

19%

4%

Provisions

35.2

(50)%

16%

Profit After Tax 

134.7

60%

2%

Source: IIFL Research

 

Invest wise with Expert advice

mobile icon
  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
ad IconAd Image

Most Read News

Article Image
  • 14 March, 2022 |
  • 7:03 AM

The US Federal committee's meeting will conclude on March 16, 2022.

Most Shared News

No Record Found