Expect increase in NPAs for SBI in Q4: Karvy

Banking major State Bank of India (SBI) has really beaten all street expectations with net interest income up by 43% at Rs 9,050 crore for October-December 2010. CNBC-TV18 had estimated the figure at around Rs 8,323 crore.

Meanwhile, the net profit has gone up to Rs 2,828 crore for the third quarter compared to Rs 2,479 crore same period last year, which is up about 14%. The street estimate was about Rs 2644 crore.

The net NPAs have gone down on a year on year basis at 1.61% versus 1.88% and the total provisions also have come in much lower than what the street was expecting at Rs 2051 crore versus Rs 857 crore. The capital adequacy is at 13.16% versus 13.77%.

Reflecting on the stellar Q3 performance, Hemindra Hazari of Karvy Stock Broking said the numbers were on expected lines.