SBI Q2 Results Preview: Net profit likely to rise 2.3%, NII growth seen at 11% YoY; margin to compress
State Bank of India (SBI), the country’s largest lender, is set to announce its September quarter results today, November 4. SBI is expected to report a subdued quarter with a marginal rise in net profit and net interest margin remaining under pressure. The public sector lender SBI is expected to report a net profit of ₹13,569 crore for the second quarter of FY24, witnessing a moderate growth of 2.3% from ₹13,264.5 crore in the same quarter of last fiscal year, as per average estimates of five brokerages.
SBI’s net interest income (NII) in Q2FY24 is likely to rise 10.7% year-on-year (YoY) on the back of 12% loan growth. NII is estimated to be at ₹38,948 crore in the quarter ended September 2023 as against ₹35,183.4 crore in the year-ago quarter. Also Read: UCO Bank Q2 Results: Net profit declines 20% to ₹402 crore Net interest margin (NIM) during the quarter is expected to contract by 10 basis points (bps) sequentially.
The bank is expected to see improvement in asset quality sequentially supported by low stressed asset pool, while credit costs are likely to remain stable. “We expect operating profit growth to be flat YoY (higher operating expenses and NIM pressure). We are building in 10% YoY NII growth on the back of 12% YoY loan growth.
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