.jpg)
Synopsis : SBI's Q4 outlook: Predicted profit dip, flat NII growth. Analysts anticipate marginal margin decline. Varied projections on earnings, margin, and asset quality.
SBI's Q4 results: Motilal Oswal Securities predicts a 3.4% YoY profit decrease to Rs 16,127 crore alongside a 2.6% YoY increase in NII to Rs 41,460 crore. It anticipates SBI's Opex to remain in check.
Analysts anticipate State Bank of India (SBI) to reveal a single-digit decline in profit for the March quarter, with net interest income (NII) showing flat growth. They foresee a sequential decrease in net interest margin, with YES Securities predicting a 3.5% loan growth on a sequential basis. The growth in NII is expected to lag slightly behind average loan growth due to increased deposit costs surpassing advances' yield.
Moreover, YES Securities expects stable slippages and a notable rise in provisions on a sequential basis, attributing it to a low base in the previous quarter.
Year-on-year, YES Securities projects a 7.1% profit decrease to Rs 15,516 crore alongside a 1.2% rise in NII to Rs 40,878 crore. Meanwhile, Motilal Oswal Securities forecasts a 3.4% YoY profit drop to Rs 16,127 crore, with NII rising by 2.6% YoY to Rs 41,460 crore. They suggest that SBI's operating expenses may remain controlled, emphasizing sequential earnings improvement due to wage provisions made in Q3FY24. They express optimism about healthy business growth and stable asset quality, although they anticipate a marginal downward bias in margins.
Nuvama, on the other hand, predicts a 33% profit decline to Rs 11,071 crore. They anticipate a 4% QoQ loan growth and a 3% QoQ deposit growth. Expectations include robust growth in other income, a decline in operating expenses, and higher provisions on a QoQ basis, potentially leading to a slight margin decrease.
Despite these projections, SBI shares have surged by 40% in the past six months, with a 26% increase recorded in 2024 so far.
Related Questions
1. What are Motilal Oswal Securities' predictions for SBI's Q4 results?
Motilal Oswal Securities predicts a 3.4% YoY profit decrease to Rs 16,127 crore alongside a 2.6% YoY increase in NII to Rs 41,460 crore for SBI's Q4 results. They anticipate SBI's Opex to remain in check.
2. What are the expectations for SBI's profit decline according to YES Securities?
YES Securities projects a 7.1% profit decrease to Rs 15,516 crore for SBI, alongside a 1.2% rise in NII to Rs 40,878 crore. They also anticipate stable slippages and a notable rise in provisions on a sequential basis.
3. What is Nuvama's prediction for SBI's profit decline?
Nuvama predicts a 33% profit decline to Rs 11,071 crore for SBI. They also anticipate a 4% QoQ loan growth and a 3% QoQ deposit growth.
4. How have SBI shares performed in the past six months?
SBI shares have surged by 40% in the past six months, with a 26% increase recorded in 2024 so far, indicating strong investor interest and confidence in the company.
5. What factors are driving analysts' predictions for SBI's Q4 results?
Analysts predict a single-digit decline in profit for SBI's Q4, with net interest income (NII) showing flat growth. They expect a sequential decrease in net interest margin and a 3.5% loan growth on a sequential basis.
