Country's largest lender State Bank of India (SBI) is expected to report profit at Rs 2,496 crore for the quarter ended December 2016, a whopping growth of 124 percent compared with Rs 1,115.3 crore in year-ago quarter.
Net interest income, the difference between interest earned and interest expended, may increase 6.2 percent to Rs 14,452 crore from Rs 13,606.5 crore on year-on-year basis, according to average of estimates of analysts polled by CNBC-TV18.
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.
Slippages may remain similar to last quarter levels while treasury gains will include the stake sale of insurance business, analysts say.
In September quarter, fresh slippages were at Rs 10,341 crore, up 17.65 percent sequentially while total slippages were at Rs 11,800 crore, which were marginally higher than Rs 10,800 crore in June quarter, but were broadly in line with the annual guidance of Rs 40,000 crore.
The bank reduced its Q2 watchlist from Rs 31,000 crore to Rs 26,000 crore QoQ. There was a small recovery of Rs 430 crore in the watchlist in Q2.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
