SBI Q3 earnings preview: Here’s what to expect

Net Interest Income (NII) of Rs. State Bank Of India expected to arrive 37,187 crore for the quarter ending December 31, 2022, said Sharekhan by BNP Paribas. It is more than 21.2% 30,687 crore in the same period a year ago. The brokerage expects the bank to profit 13,572 crore – a jump of 61% year-on-year.

Meanwhile, Prabhudas Lilladher’s estimate shows SBI’s NII 36,888.8 crore – up 20.2% on a year-on-year basis. It expects a 60.3% growth in profit after tax (PAT) 13,514.4 crores.

Prabhudas Lilladher said, “SBI should continue to report better NII growth of 20.2% YoY and 6.6%, while loan growth will be in line with the industry at 3.5% QoQ.”

Estimated to be reported on pre-provision operating profit (PPOP) 23,087 crore in Q3 FY23 Vs. 18,522 crore in Q3FY22 – a jump of 24.7%, said Sharekhan.

Prabhudas Lilladher has the same hope 21,687.4 crore – up 17.1% from the year-ago period.

The bank’s advances are expected to grow at 18% on a YoY basis and margins are expected to remain stable sequentially.

Prabhudas Lilladher estimates that the gross net performing assets are likely to remain at 3.26%.

“We expect slippages to increase, however, given credit cost is less than 1%. Margins could improve 10bps sequentially,” said the brokerage report.

Among PSU banking names, SBI and PNB are Sharekhan’s top picks. Meanwhile, Prabhudas Lilladher has reiterated ‘Buy’ rating on the stock and raised its target price since 730 700, while maintaining a multiple at 1.6x Sep-24E.

SBI share price is trading 1.3% or more at 6.90 534.50 before the announcement of earnings.