SBI Q2 FY25 Earnings Preview: PAT likely to grow 14%, asset quality may improve; here is what investors can expect
SBI Q2 Earnings Preview: State Bank of India is set to report its financial results for the second quarter of FY25 this Friday. Analysts expect the country's largest bank to stage a strong financial performance with a more than 15 per cent jump in its quarterly net profit. SBI shares have rewarded investors with a 48 per cent return in 1 year, sharply outperforming the Nifty50's
SBI Q2 FY25 Earnings: State Bank of India, the country's largest lender by assets, is set to report its quarterly financial results on Friday, November 8. Analysts expect the PSU bank to stage a strong financial performance for the July-September period—or the second quarter of FY25.
Here's what investors can expect in the banking behemoth's Q2 earnings report:
SBI Q2 FY25 Results Preview | PAT likely to rise 14%
SBI is estimated to register a net profit of Rs 16,400 crore for the quarter ended September 30, which translates to a year-on-year increase of 14.4 per cent.
The PSU bank had begun the financial year with a net profit of Rs 17,035.2 crore in the first three months.
SBI Q2 FY25 Results Preview | Net interest income may grow over 5%
State Bank of India is expected to clinch net interest income (NII) of Rs 41,600 crore for the July-September period, up 5.3 per cent over the corresponding period a year ago, according to Zee Business research.
Net interest income is the difference between the interest earned and the interest paid.
SBI Q2 FY25 Earnings Preview | India's largest bank may report an improvement in its asset quality
Zee Business analysts peg State Bank of India's gross non-performing assets (GNPAs) to come in at 2.16 per cent of its total loans for the September quarter, better than 2.21 per cent for the previous three months
Similarly, they anticipate SBI's net non-performing assets (NNPAs) to be contained at 0.55 per cent for the fiscal second quarter as against 0.57 per cent for the previous three months.
The proportion of non-performing assets (NPAs)—or bad loans—to total loans determines a financial institution's asset quality.
SBI Q2 FY25 Results Preview | Provisions likely to rise significantly?
According to Zee Business research, SBI is expected to log a sharp increase in provisioning to Rs 3,900-4,000 crore from Rs 115 crore a year ago.
SBI Q2 FY25 Results Preview | Loan and credit growth may stay strong
Zee Business analysts expect SBI to clinch strong growth in its advances and deposits for the second quarter of the current financial year.
SBI Shares at 3-Month High Before Q2 Results
On Thursday, SBI Shares gained by Rs 4.5, or 0.5 per cent, to end at Rs 859.3, their highest closing level since August 1.
SBI Shares History
As of November 7, SBI shares have delivered a 48 per cent return to investors, sharply higher than the Nifty50's and Nifty Bank's 25 per cent and 19 per cent respectively.