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Earnings

SBI Q1 results today: A turnaround performance likely

Updated : August 02, 2019 08:17 AM IST

State Bank of India (SBI) will report its June-quarter earnings on Friday and analysts expect the country's largest state-owned lender to report the highest net profit in the last 21 quarters.

  • Net profit is seen at Rs 4,067.2 crore versus a net loss of Rs 4,875.9 crore.

  • However, the net interest income could be on the lower side because of the high base effect.

  • All eyes will be on bad loans in this quarter. For the last four quarters, it has been on a declining trend. Analysts are expecting slippages of Rs 7,000 to Rs 11,000 crore.

  • Gross non-performing assets (NPA) is expected to improve not only on account of healthy recovery but also higher write-offs. The bank has been writing off Rs 17,000-18,000 per quarter over the last 2 quarters and if the momentum continues, the gross NPA of 7.53 percent could see an improvement.

  • The loan growth is expected at around 12-14 percent. Last quarter it was at 13 percent.

  • The net interest margin will remain stable because they have cut rates of savings and deposits in the previous quarter and also the loan growth will aid net interest margin sustaining at 2.8 percent.

  • Resolution details of stressed accounts like DHFL, Essar will be watched closely.
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