Shares of State Bank of India (SBI) were trading marginally higher in Friday's trade ahead of its June quarter results. The stock gained as analysts expect the state-run bank to log 120-160 per cent year-on-year (YoY) jump in profit for the June quarter on a 25 per cent-plus jump in net interest income (NII). Net interest margin (NIM) is seen slipping marginally on a sequential basis.
The bottom line figure for the PSU bank would be boosted by treasury income, which is likely to be at around Rs 1,000 crore. SBI had reported a treasury loss of Rs 6,549 crore in the year-ago quarter.
Slippages were curtailed and asset quality was stable for the quarter, analysts said.
The stock rose 0.39 per cent to Rs 592.90 on BSE.
Sharekhan pegs profit figure at Rs 15,823 crore, up 160 per cent. It sees NII at Rs 39,593 crore, up 26.9 per cent YoY. Pre-provision (PPoP) operating profit is seen at Rs 25,900 crore, up 103 per cent YoY.
"Slippages are likely will be from Agri and SME segments. The core retail and corporate book will continue to hold well, Sharekhan said adding that advances are likely to grow at 17 per cent YoY.
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Motilal Oswal expects SBI to report a profit of Rs 13,757 crore for the June quarter, up 126.70 per cent YoY. It sees NII for the state-run bank at Rs 41,251 crore, up 32.2 per cent. The earnings growth is expected to to stay strong, supported by healthy treasury gains against losses seen in the year-ago quarter. Motilal Oswal expects credit costs to remain in control, asset quality to improve on low stressed asset pool and margins to remain stable for the quarter.
Prabhudas Lilladher expects SBI to report 144.3 per cent YoY rise in profit at Rs 14,821 crore. It sees NII at Rs 39,528 crore, up 26.7 per cent YoY. Elara Securities expects the state-run lender to report a 117.9 per cent jump in profit after tax at Rs 13,223.90 crore. It sees NII soaring 29.3 per cent to Rs 40,324.20 crore from Rs 31,195.90 crore.
"We expect another strong print; YoY earnings are not comparable as it had an impact from treasury losses. Strong loan growth print of 15 per cent YoY was largely supported by growth in the retail and SME segments. We expect NIM to decline sequentially but still register 29 per cent YoY NII growth. SBI has liquidity lying in treasury and this largely can be utilised for loan growth. Asset quality would sustain with curtained slippages," Elara said.
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