The aggregate picture, that was quite dismal in the run up to the GST in the previous quarter, has got better. Our analysis of over 4200 companies showed tepid growth in topline, but surprisingly there was a marked improvement in margins. Finally, unlike in the previous quarter when profitability declined, there was some revival in the September quarter with the trend line flattening.
Analysts feel if slippages come lower than previous quarter (Rs 30,059 crore in Q1FY18) and asset quality improves (from 9.97 percent in Q1) then that will be taken positively by the Street.
While optically, the aggregate earnings may not appear as a shocker, it nevertheless hides underlying weakness and a clear loss of momentum.
Bank of Baroda's total stressed assets increased from 10.8 percent to 11.7 percent sequentially. Net interest income was up 1 percent YoY and profit tanked 52 percent to Rs 203.4 crore in Q1.
Subsidiaries have dragged down the Q1 earnings for State Bank of India with a major deterioration in the asset quality. In an interview to CNBC-TV18, Rajnish Kumar, MD of SBI spoke about the results and his outlook going forward.
Analysts feel lower trend of slippages (Rs 10,368 crore in Q4FY17) will be seen positive. If net interest margin comes above 2.8 percent then that will also be positive.
Provisions may witness a slight uptick after the RBI's diktat in June. Positive trends on asset quality will, however, continue with the pace of slippages into NPAs declining for all banks.
Even though clouds of the rise in non-performing assets still looms on SBI, global brokerage firms keep a leap of faith and maintain their buy recommendation.
In an interview to CNBC-TV18, Manish Ostwal, Senior Research Analyst at Nirmal Bang Securities spoke about State Bank of India's Q4 numbers and the performance of the subsidiaries.
In an interview to CNBC-TV18, Arundhati Bhattacharya, Chairman of SBI spoke about the results and the latest happenings.
In the post-earnings press conference, Arundhati Bhattacharya said, “We do expect, we will need to take some pain in FY18 as the resolutions take place but FY19 things will get better.”
The mother ship of the Indian banking industry is navigating very well in turbulent waters. That’s what we conclude after looking at a very decent set of fourth quarter numbers from State Bank of India.
Some of the top public sector banks declared their quarterly results last week and senior analyst MB Mahesh of Kotak Institutional Equities says there have not been any major negative surprises. The results were in-line for some banks and better-than- expected for others, he says.
Ground work to resolve the nonperforming loans‘ (NPL) issue has been completed but couple of more quarters need to go by before results start showing says, State Bank of India‘s MD-Corp Banking Group B Sriram sharing his outlook on performance in the coming quarters with CNBC-TV18.
Beating analyst estimates, country‘s largest lender State Bank of India‘s net profit for the third quarter jumped 134 percent to Rs 2,610 crore from Rs 1,115.34 crore in year-ago quarter.
Analysts expect sharp earnings growth on a low base in year-ago quarter and loan growth to fall sharply to 5-6 percent in Q3.
SBI associate State Bank of Travancore (SBT) today reported a net loss of Rs 67.76 crore for third quarter ended December due to four-fold jump in bad loans.
HDFC Bank profit in third quarter grew by 15 percent to Rs 3,865.3 crore compared with Rs 3,356.84 crore in year-ago period. Net interest income increased 17.5 percent year-on-year to Rs 8,309 crore in the quarter gone by.
According to Sanjiv Bhasin of IIFL there is a lot of pessimism around the third quarter earnings but he expects banks to be in a sweet spot.
Speaking to CNBC-TV18 Romesh Sobti, MD & CEO of Indusind Bank said that CV sales in November weren‘t as bad as expected. December wasn‘t as bad as forecast.
Due to the recent ban on Rs 500 and Rs 1000 currency notes to curb counterfieting and crack down on black money, Agarwalla says MSMEs' business will be severly hurt and could lead to slippages.
Country's largest lender State Bank of India (SBI) is likely to show a 30.5 percent degrowth in second quarter profit Rs 2,697 crore compared with year-ago period.
In an interview to CNBC-TV18, N Krishnamachari, MD of State Bank of Mysore spoke about the results and his outlook for the company.
Net Interest Income is expected to increase by 1.6 percent Q-o-Q (up 2 percent Y-o-Y) to Rs 14537.6 crore, according to KR Choksey.
Net Interest Income is expected to increase by 4.5 percent Q-o-Q (up 5 percent Y-o-Y) to Rs 14961.3 crore, according to Centrum.