SBI Q4 results preview: India’s largest lender to report 62% surge in PAT, steady asset quality

State Bank of India – India’s largest lender by assets and second largest by market value – is all set to report its financial results for the quarter ended March 2023 on Thursday, May 18. Analysts expect the state-run banking behemoth to have clocked a robust performance in the final three months of the financial year gone by, driven by double-digit loan growth and firm asset quality.

They estimate double-digit growth in the PSU bank’s top-line as well as the bottom-line.

According to Zee Business research, SBI is likely to report a quarterly standalone net profit of Rs 14,800 crore, which translates to growth of 62.4 per cent compared with the corresponding period a year ago. Its net interest income (NII) — or the difference between interest earned and interest paid — is estimated at Rs 40,000 crore, marking an increase of 28.2 per cent on a year-on-year basis.

State Bank of India’s net interest margin — a key measure of profitability for lenders — is pegged at 3.6 per cent, up 10 basis points on a sequential basis.

The top lender is estimated to report steady asset quality, measured as a percentage of non-performing assets or bad loans in total loans.

SBI’s gross NPAs are estimated to decrease by 24 basis points on a quarter-on-quarter basis to 2.9 per cent, according to Zee Business research.

Its net NPAs are expected to remain unchanged sequentially at 0.7 per cent.

SBI Q4 results: Here’s what else to expect

According to Zee Business analysts, SBI’s loan growth is estimated to be in the range of 15-16 per cent and deposit growth to come in at 8-10 per cent.
The lender’s slippages — or new bad loans — are estimated to rise 10-11 per cent compared with the year-ago period.

SBI shares: Historical performance

As of May 16, SBI shares have grown 28.7 per cent in the past one year, a period in which the Nifty headline index has risen 15.4 per cent.
Will SBI also announce a dividend on May 18?

SBI dividend history

Here’s a look at the lender’s dividend announcements in recent years:

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