Moneycontrol
Feb 09, 2018 11:28 AM IST | Source: Moneycontrol.com

SBI Q3 profit seen down 29%, NIM seen healthy; slippages key to watch

Provisions are expected to remain elevated due to stressed assets & treasury portfolio.

Moneycontrol News @moneycontrolcom

Country's largest lender State Bank of India's Q3 standalone profit is seen falling 29 percent year-on-year to Rs 1,853. 7 crore, compared to Rs 2,610 crore in year-ago

Net interest income, the difference between interest earned and interest expended, may grow 23.1 percent to Rs 18,152.7 crore for quarter ended December 2017 compared to Rs 14,751.5 crore in same quarter last year, according to average of estimates of analysts polled by CNBC-TV18.

On sequential basis, profit may increase 17.2 percent and NII is seen falling 2.3 percent.

Key things to watch out for:

If there is lower trend of slippages in Q3 (compared to Rs 1,86,115 crore in Q2) and improvement in asset quality (from 9.83 percent in Q2) then that would be take positively by the Street.

Slippage from watchlist will be seen closely. At the end of September 2017, watchlist was at Rs 21,288 crore.

Provisions are expected to remain elevated due to stressed assets & treasury portfolio.

Net interest margin is expected to remain healthy owing to low cost deposits. In Q2FY18, NIM was at 2.43 percent.
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