SBI Q3 earnings preview: Here is what to expect

The net interest income (NII) of SBI is estimated to come in at ₹37,187 crore for the quarter ended December 31, 2022, said Sharekhan by BNP Paribas. This is 21.2% increase from ₹30,687 crore in the same period a year ago. The brokerage expects the bank’s profit to be at ₹13,572 crore – a jump of 61% year-on-year.

Meanwhile, Prabhudas Lilladher estimates show SBI’s NII at ₹36,888.8 crore – up 20.2% on a year-on-year basis. It expects profit after tax (PAT) to increase by 60.3% YoY to ₹13,514.4 crore.

“SBI should continue to report better NII growth of 20.2% YoY & 6.6%, while loan growth would be in-line with industry at 3.5% QoQ,” said Prabhudas Lilladher.

The Pre-provision operating profit (PPOP) is estimated to be reported at ₹23,087 crore in Q3 FY23 versus ₹18,522 crore in Q3FY22 – a jump of 24.7%, said Sharekhan.

Prabhudas Lilladher expects the same to come in at ₹21,687.4 crore – up 17.1% from a year ago period.

The bank’s advances are likely to grow at 18% on a year-on-year basis and margin is expected to remain stable sequentially.

The gross net performing assets are likely to be at 3.26%, estimates Prabhudas Lilladher.

“We expect slippages to go up, however, credit cost below 1%. Margin may improve 10bps sequentially,” said the brokerage report.

Among PSU banking names, SBI and PNB are Sharekhan’s top picks. Meanwhile, Prabhudas Lilladher has reiterated ‘Buy’ rating for the stock and raised its target price to ₹730 from ₹700, while maintaining multiple at 1.6x Sep-24E.

The SBI share price is trading higher by 1.3%, or ₹6.90, at ₹534.50 ahead of the earnings announcement.