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State Bank of India (SBI) will announce its third quarter earnings on Friday. Profit for the quarter is expected to jump 45.7 percent year-on-year to Rs 3,254 crore supported by treasury income, fee income and operating profit.
Worsening asset quality is a worry indeed, but Jignesh Shial, research analyst, IDBI Capital Markets says what is more worrying is that these banks are not growing, putting pressure on margins as well.
Ghosh said the bank‘s restructured loan pipeline is around Rs 400 crore, and there were fresh slippages of around Rs 200 crore during the December quarter
Nischal Maheshwari, Head of Research, Edelweiss Securities is positive on Allahabad Bank and OBC from the banking pack and sees them performing well in the future.
SBI is working on quality delivery with McKinsey. The country's largest bank has rolled out two pilot branches. It has rolled out retail assets processing centre in Mumbai and Delhi, says Arundhati Bhattacharya of SBI.
Suruchi Jain, equity research analyst, Morningstar India says SBI's profit after tax is up 30%, NPA is flat and most slippages on infrastructure book has already happened and hence things should improve from hereon.
Net interest income (NIIs) is likely to grow 11 percent to Rs 13588 crore versus Rs 12251 crore year-on-year. Analysts on an average expect domestic NIMs to be maintained but international NIMs may be under pressure. Credit gowth, during the period, is likely to grow 10 percent.
Net interest income is expected to increase by 3.7 percent Q-o-Q (up 12.2 percent Y-o-Y) to Rs 13743.3 crore, according to Motilal Oswal.
Maintaining its cautious view, global rating agency Moody's recently said that it remains negative on Indian banks on the back of high leverage in the corporate sector.
Punjab National Bank missed street expectations on all parameters with the second quarter net profit rising 13.8 percent as against expected growth of 142 percent as provisions remained at elevated levels
As the earnings season winds up and most of India‘s notable corporates have posted their quarterly results updates, net profits were slightly ahead of estimates, according to projections by brokerage firm Kotak, but there was “limited evidence of a meaningful upgrades to earningsâ€.
Asset quality of SBI continued to worsen in Q3FY14 even as margins and lesser restructured assets provide some solace.
State Bank of India has come out with mixed set of numbers. The NII has grown 13 percent versus street estimates growth of 14 percent.
Vaibhav Agarwal of Angel Broking feels the bank is facing a triple whammy.
Rajiv Mehta, however, expects the net interest margins to improve marginally in the current quarter.
Net interest income is expected to increase by 4 percent Q-o-Q (up 14.2 percent Y-o-Y) to Rs 12739.9 crore, according to Motilal Oswal.
State Bank of India is coming out with its numbers. The profits could decline for the fourth quarter in a row.
According to CNBC-TV18 poll, analysts expect profit after tax to fall 26 percent to Rs 2,500 crore and net interest income to decline 14 percent to Rs 12,669 crore compared to a year-ago period.
SBI Wednesday reported a 35 percent year-on-year decline in its quarterly net profit, but the rate of increase in bad assets slowed down, drawing applause from the stock market.
On the positive side, Arundhati Bhattacharya, Chairperson of State Bank of India says agriculture was good this year, so the bank was able to convince farmers to come forward and renew their loans, take fresh loans and also repay some of their older outstanding ones.
Experts have given mixed reaction of the State Bank of India earnings. While Vaibhav Agrawal, Angel Broking believes the result was in line with expectations, Suruchi Jain of Morningstar continues to keep high uncertainty rating on the stock.
Net interest income of State Bank of India are expected to increase by 4.4 percent Q-o-Q (up 9.5 percent Y-o-Y) to Rs 12019.5 crore.
Net slippages are expected to decline Q-o-Q due to higher recoveries or upgrades (led by agri) during second quarter, but higher restructuring will continue into Q2, feel analysts.
India‘s largest lender the State Bank of India shares on Monday hit 52-week low after its first quarter (April-June) standalone net profit dropped 14 percent year-on-year to Rs 3,241 crore. Net interest income (NII) or the difference between interests earned and paid out, inched up 3.5 percent to Rs 11,512 crore.
A spurt of loan defaults and lower net interest income in the three months that ended June triggered the second consecutive drop in quarterly profit for SBI, sending its shares to their lowest since December 2011