SBI likely to post about 66% jump in Q4FY23 net profit

Central Bank of India (SBI) is likely to post 66 percent year-over-year (YoY) growth in net profit for the fourth quarter (Q4FY’23) on the back of healthy growth in net interest income, jump in fee income, and lower loss provisions. loans, according to analyst estimates.

India’s largest bank is expected to post a net profit of around Rs 15,100 crore, the brokerage firm estimates.

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The bank will announce its quarterly results later today.

Subsidiary Body for Implementation It recorded the highest independent quarterly net profit ever 14,205 crore in Q3FY23 on the back of healthy growth in net interest income and non-interest income, and sharp decline in loan loss provisions. Asset quality has also improved, with GNPAs dropping below the ₹1-lakh-crore mark for the first time since 2016.

Analysts see SBI net interest income growing by around 27 per cent to INR 39,500 crore in the fourth quarter.

Loan growth is expected in the range of 15-16 percent.

Strong numbers

Shreyansh Shah, Research Analyst, Stoxbox, expects the SBI to report a strong set of numbers in the fourth quarter, with high teen loan growth even as deposits are expected to grow in high single digits, translating into healthy growth in the NII.

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Furthermore, better recoveries and some moderation of slippages are likely to help improve asset quality.

Kotak Institutional Equities expects a slippage of about 1.5 percent in loans, mostly driven by small and medium enterprises, and retail, while corporate loans will continue to hold up relatively well.