Q3FY24 Preview State Bank of India: NII seen at ₹402,375 Million, PAT at ₹130,727 Million

2 Feb 2024 , 11:39 AM

Result date: February 3, 2024

Recommendation: Add

Target price: ₹630 

(Source: IIFL Research)

State Bank of India (SBI) could post healthy growth in both advances as well as deposits for the December quarter. Pick up in system-wide credit growth would be reflected in the Bank’s credit growth. SBI’s Net Interest Income or NII could grow by about 6% as compared to the year-ago quarter.

Sequentially, Net Interest Margin or NIM could remain either flattish or post a decline of 10 basis points, believe analysts.

While credit costs are likely to remain under check, elevated levels of operating expenses (due to provisions towards wage revision) could put some pressure on SBI’s profitability. 

The Bank’s Profit After Tax or PAT could decline 8% over the year-ago quarter.

Important management insights to watch out for:

• Comments on underlying trends in the economy
• Traction in Deposits
• Updates on unsecured loan growth, capital adequacy

₹ Million	December 2023 estimates	QoQ change	YoY change
Net Interest Income	402,375	1.87%	5.70%
Profit After Tax	130,727	(8.77)%	(7.97)%

Source: Brokerage reports