Ahead of its quarterly earnings today, the brokerages expect India’s largest lender — State Bank of India to report robust and strong first-quarter results of the financial year 2021-22 year-on-year.

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They expect the profit of the government-owned bank to swell between 33 to 85 per cent on the back of United Breweries stake sale and lower interest income reversals as well as on healthy NIMs.

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The public lender last quarter (Q4FY21) had reported a jump of over 80 per cent in the profit, post which the stock has a winning streak for a couple of days, hitting a new 52-week high.

Emkay Global predicts SBI would come out with around 63 per cent YoY rise and 6 per cent gain on a sequential basis in profit to Rs 6450.7 crore in Q1. While Nomura estimates profit swelling by 85 per cent YoY at Rs 7,757.3 crore. The bank had reported a profit of Rs 4,189.4 crore in Q1FY21.

With respect to operating profit, Nomura has maintained a cautious expectation of Rs 16,385 crore, predicting a decline of 9 per cent YoY basis, whereas HSBC estimates growth of 15.5 per cent YoY at Rs 19,086.6 crore. The bank has reported Rs 18,200 crore operating profit in Q1FY21.

In terms of asset quality, slippages to come around Rs 9,200 crore in the June 2021 quarter, Prabhudas Lilladher expects, which is higher than Rs 5,000 crore reported in the previous quarter (Q4FY210, on likely deterioration in asset quality in the Agri/SME segment. 

The brokerage is, however, bullish on recovery from UBL loans worth Rs 20 crore and estimates provisions of SBI in Q1FY22 drop by 20.5 per cent YoY and 10 per cent QoQ to Rs 9,941 crore.

The SBI shares in the last five sessions have been continuously surging amid strong results expectations. The stock on Tuesday hit a new 52-week high after gaining 3 per cent to Rs 447.8 per share on the BSE intraday trade, while it has surged over 6 per cent in the last 5 sessions.