The State Bank of India (SBI) is expected to report a mixed set of numbers for the June quarter, with steady loan growth supporting net interest income (NII), while profitability may remain under pressure due to softer margins and higher credit costs.
According to consensus analysts' estimates on Bloomberg, SBI's NII is likely to rise 13% year-on-year to Rs 46,214 crore. However, net profit is expected to decline 1% to Rs 19,052 crore. Net interest margin (NIM) is estimated at 2.77%, lower on a quarter-on-quarter basis.
On the asset quality front, the gross non-performing asset (GNPA) ratio is expected to inch up 10 basis points sequentially to 1.59% indicating worsening of asset quality.
Analysts expect advances to grow 17-18% year-on-year, while deposit growth is likely to lag. Operating expenditure growth is expected to remain under control, and treasury gains could provide support to operating profit during the quarter.
Key monitorables for the results will include any recovery in NIMs, the impact of the expected credit loss (ECL) transition, and trends in credit costs, which are expected to increase due to seasonal factors.
SBI Q1 Preview: Key Metrics To Watch
- Net interest income (NII): Seen rising 13% YoY to Rs 46,214 crore.
- Net interest margin (NIM): Expected at 2.77%, down sequentially.
- Net profit (PAT): Estimated to decline 1% YoY to Rs 19,052 crore.
- Gross NPA ratio: Seen rising 10 bps QoQ to 1.59%.
SBI Q4 Recap
State Bank of India's March quarter numbers fell short of expectations, triggering a sharp sell-off in the stock. Standalone net profit came in at Rs. 19,684 crore — down from Rs. 21,028 crore in the December quarter. Operating profit contracted more starkly, sliding to Rs. 27,704 crore from Rs. 31,286 crore in Q4 FY25, raising questions about near-term earnings momentum.
SBI Share Price
The stock traded 2.64% higher at Rs 1082.80 apiece on the NSE as of 2:16 p.m. The scrip went as high as 2.89% to Rs 1085.50 apiece during the day. This compares to a 0.12% advance in the Nifty index.
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