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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.
SBI's margins have been impacted due to slippages but are expected to improve with growth in advances, says Chairman Arundhati Bhattacharya.
Siddharth Purohit of Angel Broking said that the slippages number has been a positive surprise and this shows that SBI has been able to manage its asset quality and balance sheet better than other PSBs.
Nilesh Parikh of Edelweiss Securities expects SBI to report slippages in the range of Rs 15,000-17,000 crore for the quarter ending in June.
Key things to watch out for would be slippages, slippages from restructured book, gross non-performing assets, watchlist, net interest margin and update on non-core assets selling.
Net interest income is expected to increase by 1.5 percent Q-o-Q (up 13 percent Y-o-Y) to Rs 15517.2 crore, according to KR Choksey.
Calling Q4 "poor numbers sprinkled with optimsim" Axis Capital says the market chose to ignore State Bank of India's dismal Q4 results and instead focus on longer-term trends.
Arundhati Bhattacharya, Chairman of SBI said that the bank is certain of recovery going forward as business confidence has been upbeat lately.
Gaurang Shah of Geojit BNP Paribas is positive on SBI, but hints at some more stress for the lender in the next two quarters.
Overall slippages can be in the range of Rs 20,000-25,000 crore for the quarter, including likely slippages through asset quality review of Rs 15,000 crore, against Rs 20,692 crore in Q3FY16 and Rs 4,769 crore in Q4FY15.
SP Tulsian in an interview to CNBC-TV18 shared his fundamental view on stocks that posted earnings like TVS Motors, ICICI Bank, MRF, CCL and others.