SBI Q4 preview: Multi-fold jump in profit likely | Economic Times

NEW DELHI: State Bank of India (SBI) is likely to report multi-fold jump in net profit for the March quarter due to proceeds from SBI Card listing. Net interest income (NII) is seen rising in double digits while slippages are likely at 1.5-1.75 per cent of loans.All eyes will be on slippages in the SME segment, figures on customers availing moratorium and whether the bank makes additional provisions for Covid-19, over and above the RBI guidelines. Kotak Institutional Equities expects the state-run bank to report a 13.5 per cent YoY rise in net interest income (NII) at Rs 26,063 crore against Rs 22,954 crore in the corresponding quarter of last year. It sees profit rising to Rs 9,285 crore from Rs 838 crore.The numbers would largely be aided by proceeds from the Rs 10,350 crore SBI Cards IPO, which got listed in March this year."We expect a volatile performance due to recovery in NPLs (Alok Industries and a few smaller ones) as the accounting treatment is likely to be different for each recovery. Loan growth will be subdued at 7 per cent YoY and NIM (core) unchanged sequentially at 2.9 per cent. Reported NIM would have one-off from NPL recovery," Kotak said.ICICI Securities said SBI Card IPO to give provide Rs 3,000 crore boost to other income. The brokerage sees slippages for the quarter at Rs 8,000 crore. It pegs SBI profit at Rs 8,245 crore.HDFC Securities expects SBI's adjusted profit to grow 10 per cent sequentially to Rs 6,020 crore, partially aided by the lower tax rate as the bank opted for new tax regime in 3Q. On a YoY basis, it sees profit growing by 7.3 times on a smaller base. This brokerage expects NII to grow 11.6 per cent to Rs 25,610 crore.Meanwhile, NIM would be down sequentially, said analysts, as December quarter saw Essar-related interest recoveries. "NIM looks to have peaked out with no material recovery of bad loans," said BOB Capital Markets.