State Bank of India (SBI) is expected to post a robust standalone net profit of about ₹16,000 crore in the third quarter against ₹9,164 crore, with the profitability likely to be supported by steady growth in net interest income, healthy growth in other income and relatively lower credit costs, according to analyst estimates.
Net interest income (difference between interest earned and interest expended) could come in at about ₹42,500 crore (₹39,816 crore in the year ago quarter).
YES Securities, in a report, noted that “sequential (quarter-on-quarter/QoQ) loan growth will be in the 3 per cent ballpark due to idiosyncratic growth trajectory. NII growth will be slightly slower than average loan growth due to rise in cost of deposits outpacing yield on advances.
“Consequently, NIM will be slightly lower sequentially. Sequential fee income growth broadly match loan growth. Opex growth would slightly lag business growth. Slippages would be higher on sequential basis due to seasonality. Provisions will be stable on sequential basis.”
In the second quarter, the Bank’s domestic advances grew by a robust 15.55 per cent yoy to ₹33,32,533 crore and overseas advances were up by 11.56 per cent to ₹5,88,185 crore. Within domestic advances, corporate advances growth reported the highest growth of 18.35 per cent, followed by agriculture (17.67 per cent), .SME (17.36 per cent) and retail (12.32 per cent).
