Results preview: SBI’s second-quarter net profit may rise 20%

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A strong loan growth coupled with lower credit cost could see State Bank of India post about 20 per cent year-on-year (yoy) growth in net profit in the second quarter (Q2FY25), per the average of estimates by various brokerages.

India’s largest bank could post a net profit of about Rs 17,200 crore, per the estimates.

Chairman Challa Sreenivasulu Setty, who take charge of the Bank on August 28, 2024, will be interacting with the media at 2.15 pm today regarding the Bank’s results.

Axis Capital sees the Bank’s loan growth in Q2FY25 at 15 per cent against 16 per cent in Q1FY25 and 13 per cent in Q2FY24. It assessed deposit growth at 7 per cent against 8 per cent in Q1FY25 and 12 per cent in Q2FY24.

The firm expects SBI’s gross slippage ratio to be lower at 0.7 per cent against 1.2 per cent in Q1FY25 and 1.4 per cent in Q2FY24. The credit cost is seen lower at 0.3 per cent against 0.37 per cent in Q1FY25, but higher vis-a-vis 0.01 per cent in Q2FY24.

PL Capital estimated SBI’s loans to grow at 16 per cent yoy and credit cost at 0.37 per cent (up 36 basis points yoy).