SBI Q1 net seen down 8.35% at Rs 1306.8 cr

State Bank of India, SBI is to announce its first quarter numbers. According to CNBC-TV18 estimates, the bank is expected to post 8.35% degrowth in its Q1 net profit of Rs 1306.8 crore as against Rs 1425.9 crore in same period of last year.

Net interest income is seen going up by 10.89% to Rs 4659.26 crore from Rs 4201.4 crore.

Q1FY09 Expectations

Expect margins to be stable despite a PLR cut in February 2008

Expect advances growth to remain strong for the bank at ~27% YoY and deposit growth at ~23% YoY

Fee income growth expected 20%; Treasury profits are expected to be subdued

MTM losses on AFS investment portfolio (including Rs100b of rights issue bonds) are expected to dent earnings
growth during the quarter

Factored in Rs 550 cr of MTM losses during 1QFY09 for SBI