Q2FY24 Preview: State Bank of India: NII seen at Rs. 389,541 million, PAT at Rs. 143,109 million

2 Nov 2023 , 10:05 AM

Result date: November 4, 2023

Recommendation: Add

Target price: Rs. 640

(Source: IIFL Research)

State Bank of India (SBI) is likely to witness increased momentum in loan growth on the back of system-wide pick up. Net Interest Income or NII could grow 11% as compared to the year-ago quarter.

Net Interest Margin is likely to remain stable, even as operating expenditure is likely to trend up amid increased investment. Credit costs of SBI are likely to remain in control during the quarter. It could make provision for wage revision at a run rate of Rs. 4.8 billion per month. SBI’s asset quality is likely to improve further, supported by low stressed asset pool.

Profit After Tax or PAT could grow 8% as compared to the year-ago quarter.

Important management insights to watch out for:

• Trends in credit demand across segments and markets
• Key margin drivers going forward
• Outlook on asset quality

Rs. Million	June 2023 estimates	YoY change	QoQ change
NII	389,541	10.7%	0.1%
PPOP	222,577	5.4%	(12.0)%
Profit After Tax	143,109	7.9%	(15.2)%

Source: Brokerage Reports