Net Interest Income (NII) is expected to increase by 10.6 percent Y-o-Y (up 0.8 percent Q-o-Q) to Rs. 23,124 crore, according to KR Choksey.
Net Interest Income (NII) is expected to increase by 10.2 percent Y-o-Y (up 0.4 percent Q-o-Q) to Rs. 23,033.4 crore, according to ICICI Direct.
Brokerages retain a positive stance, but slash price target on higher slippages. They see scope for higher credit cost in FY20 and downside risks to earnings from a larger watch list.
Brokerages feel that with the expected fall in slippages, asset quality should improve.
Net Interest Income (NII) is expected to increase by 2.5 percent Y-o-Y (down 2.7 percent Q-o-Q) to Rs. 22,340 crore, according to Sharekhan.
Net Interest Income (NII) is expected to increase by 3 percent Y-o-Y (down 2 percent Q-o-Q) to Rs. 22,520.7 crore, according to Kotak.
On the asset quality front, slippages to non-performing assets (NPA) was contained at Rs 7,500 crore, which was encouraging
Asset quality on sequential basis is expected to improve with slippages either likely to be steady or lower compared to previous quarter, brokerages said
NBFCs had a marginally better quarter than Q3 as liquidity eased for retail players. Slowdown in auto sales and increase in incremental cost of funding will weigh on Q4 performance
But non-auto consumer discretionary companies like Titan and Zee Entertainment are expected to report relatively stronger growth, Deutsche said.
Net Interest Income (NII) is expected to increase by 14.8 percent Y-o-Y (up 1.1 percent Q-o-Q) to Rs. 22,938.6 crore, according to Motilal Oswal.
Net Interest Income (NII) is expected to increase by 18.4 percent Y-o-Y (up 4.2 percent Q-o-Q) to Rs. 23,654.4 crore, according to Kotak.
Kumar said that the exposure is secured, serviceable and the cash flows are positive
Asset quality should be stable as slippages would be largely similar QoQ and as there are not too large recoveries, said Prabhudas Lilladher
CLSA said earnings for smaller private banks, like IndusInd Bank and Yes Bank, may be impacted by provisioning for stressed loans and slower growth in corporate banking fees
Elara Capital does not expect any new large corporate loan account to slip barring re-classification of IL&FS
Input cost pressure is being increasingly absorbed by companies as the demand environment in weakening
Hopeful of large corporate recoveries worth about Rs 2,000 crore from the accounts under insolvency, Bank of India chief Mohapatra is also banking on recovery from assets put up on sale and one-time settlement of NPAs.
With a turnaround in sight, investors looking to play the asset recovery and resolution cycle should buy into the stock for the long term
Brokerage houses Nomura, Motilal Oswal, Emkay Research and Prabhudas Lilladher see 40-97 percent fall in Q2 profit YoY. Kotak expects Rs 740 crore loss due to elevated provisions.
Elevated provisions, tepid growth in net interest income, and lower other and operating income may hit SBI's profitability
Revenue is expected to grow robustly at more than 20 percent but due to margin headwinds and extended provisioning requirements of corporate lenders, bottom-line improvement is slow
After falling nearly 4 percent on Friday, shares of SBI slipped by about 3 percent on Monday.
The bank didn’t avail of RBI’s dispensation with regard to spreading of MTM loss over four quarters and instead took the full hit in Q1.