SBI NII seen up 18% at Rs 10711 cr

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SBI NII seen up 18% at Rs 10711 cr

SBI country's biggest lender, is expected to report a profit after tax of Rs 3,061.6 crore in the October-December quarter of FY12, a growth of 8% as compared to Rs 2,828.1 crore in a year ago quarter.

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By Avni Raja, CNBC-TV18

State Bank of India (SBI), country's biggest lender, is expected to report a profit after tax of Rs 3,061.6 crore in the October-December quarter of FY12, a growth of 8% as compared to Rs 2,828.1 crore in a year ago quarter.
 
Net interest income is seen going up by 18% to Rs 10,711.7 crore from Rs 9,049.8 crore year-on-year.

Highlights

- Loan growth estimated slightly subdued at 14%
- Deposit growth at 15%
- Fee income expected to grow 9%
- Margins likely to remain healthy given bank's has been focusing on margin improvement
* In Q2 margins were at 3.8%
- Absence of one-off provisions and lower MTM provisioning would lead to sequential decline in provisions
* In Q2 bank had provided Rs 550 Cr towards counter cyclical buffer & 460 cr towards MTM losses
 
Asset Quality

- Slippages likely to remain at elevated levels but expected to see a sequential decline
- Higher restructuring likely
- Expect strong trend in recoveries and up-gradations which will cushion asset quality
- Kingfisher Airlines (KFA) could have Rs 1400 crore impact on slippages
* SBI has classified its Rs 1500 crore exposure to KFA as NPA
 
Exposure to stressed sectors

- SBI has Rs 1500 crore exposure (5.7%) to KFA airlines

- Rs 16,000 crore exposure to aviation

- Air India: SBI Rs 1300 crore

- Power exposure:
* Rs 44,900 crore (about 4% of total credit)
* SEBs: Rs 6500 crore (0.8%)

- Total telecom exposure: Rs 23,200 crore (about 2% of total credit)

- Impact of 2G license cancellation   
* Funded exposure of Rs 1100 crore to affected companies
* Non-funded exposure of Rs 3400 crore
 
Capital Infusion

- Govt approves Rs 7900 crore of capital infusion

- Capital infusion by 31st March 2012

- SBI requires Rs 3000 crore to make CAR of 9%

# SBI requires Rs 30,000 - Rs 40,000 crore capital over next 3 years