SBI Q4 Preview: Profit may fall 24% YoY; NII seen flat

Operating expenses would be higher due to wage revision-related costs (final settlement impact).

Net for the fourth quarter is likely to drop 24% year-on-year, according to an average estimate of five brokerages.

In the preceding third quarter, SBI's net profit fell 35% to Rs 9,164 crore and NII was marginally up to Rs 39,815 crore.

Here's what to expect from SBI's :

Kotak Equities

The brokerage expects operating profit to decline 20% year-on-year (higher operating expenses) and NIM normalisation. We are building in flat NII growth on the back of 14% year-on-year growth. It is building in NIM to decline 10 bps quarter-on-quarter but there is some scope for an improvement in the repricing of loans upward, which can partially offset the pressure of higher cost of funds.

It expects slippages at 1.2% of loans as the overall loans are holding up well. It is likely to see lower recovery and upgrades as well. Key discussion would be NIM, RoE, unsecured loans and CAR for the quarter.

Nuvama

The brokerage expects loan growth of 4% and deposit growth of 3% quarter-on-quarter. It sees strong growth in other income quarter-on-quarter and opex to decline. Provisions are expected to be higher quarter-on-quarter. Margins could decline marginally.

Motilal Oswal

Opex to remain under control and earnings to improve as wage provisions already made in 3QFY24. It expects business growth to remain healthy. Asset quality to remain broadly stable. to be broadly stable with slight downward bias.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)