SBI shares rise ahead of Q4 results

Shares of State Bank of India (SBI) – India’s largest lender in terms of assets – rose in the early morning session on Thursday amid expectations of good financial earnings for the January-March quarter of the financial year 2022-23 (Q4FY23) today.

The stock jumped by 1 per cent to touch the day’s high level of Rs 592.35 per share on the BSE intraday, however, it was trading flat with a positive bias at Rs 589.5 apiece minutes after the market open on Thursday. SBI shares so far in May rose nearly 3 per cent on hopes of better Q4 earnings.

SBI Q4 results expectations

Most analysts, including Zee Business research, expect the state-run bank is scheduled to report stellar performance during the March quarter with an improvement in asset quality.

The analysts at Zee Business estimate SBI to report a 62.4 per cent year-on-year (YoY) growth in its standalone net profit to Rs 14,800 crore for the March-end quarter of the previous fiscal.

While the PSU bank’s net interest income (NII) — or the difference between interest earned and interest paid — is seen growing by 28.2 per cent YoY to Rs 40,000 crore, Zee Business research said.

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.

SBI is expected to report steady asset quality, measured as a percentage of non-performing assets or bad loans in total loans. Whereas its gross NPAs – or bad loans – are estimated to decrease by 24 basis points on a quarter-on-quarter basis to 2.9 per cent, according to Zee Business research.

SBI shares historical performance

SBI shares gained almost 29 per cent in the last one year as compared to over a 12 per cent rise in the Nifty index.

The PSU bank stock dipped nearly 4 per cent year-to-date against the flat Nifty50 index during the same period.