State Bank of India may post Q2 profit at Rs 2,508 cr; slippages, loan growth key

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.

November 10, 2017 / 08:10 AM IST

State Bank of India, the country's largest lender, is expected to post profit at Rs 2,507.6 crore for the quarter ended September 2017, compared with net loss of Rs 560 crore in year-ago.

Net interest income, the difference between interest earned and interest expended, may grow 5.5 percent to Rs 19,088.7 crore year-on-year, according to average of estimates of analysts polled by CNBC-TV18.

The commentary from the new management will be closely watched, especially related to asset quality (slippages and watchlist) and loan growth for second half of current financial year.

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.

Capital raising plans and slippage from watchlist will also be seen closely. At the end of June quarter, watchlist stood at Rs 24,444 crore.

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Analysts feel net interest margin is expected to remain healthy in Q2FY18 owing to low cost deposits. In June quarter, NIM was at 2.36 percent.

SBI Life stake sale is expected to aid in earnings. The bank raised more than Rs 8,000 crore through the issue towards September-end. State Bank of India sold 8 crore shares and BNPPC (BNP Paribas Cardif SA) 4 crore shares through IPO.
first published: Nov 9, 2017 05:32 pm
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