Q4FY22 Preview: State Bank of India: NII seen at Rs315.3 billion, PAT at Rs86.2 billion

12 May 2022 , 01:35 PM

Result date: 13^th May, 2022
Recommendation: Buy
Target price: Rs720

Country’s largest bank could post 10% loan growth over the year-ago quarter. This could drive 16% growth in Net Interest Income (NII) as compared to the year-ago quarter. Weakness in non-interest income could keep the pre provisioning operating profit flattish, though reduced provisions could lend some support.

SBI’s Net Interest Margin is estimated to remain stable at 3.15%.

The bank’s slippages could remain under check and asset quality could improve.

Its Profit After Tax (PAT) growth is estimated at 34% over the year-ago quarter.

Important management insights to watch out for:

• Credit demand across segments
• Trends in restructuring and asset quality
• Outlook on net interest margin

 

Rs Billion	March 2022 estimates	QoQ change	YoY change
Net Interest Income (NII)	315.3	3%	16%
Total Income	430.8	9%	0%
Pre-Provisioning Operating Profit	196.5	6%	0%
Profit After Tax (PAT)	86.2	2%	34%

Source: IIFL Research