SBI Q3 Preview: Key Expectations | NDTV Profit - video Dailymotion

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#Q3WithNDTVProfit | #SBI Q3 profit expected to fall 6%.   Here's Mimansa Verma with the details.   For all the latest earnings updates, visit: http://bit.ly/37kV0CO

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00:00 The State Bank of India is set to announce its Q3 earnings where it is expected to report a 3.2%

00:05 year-on-year fall in its net profit to Rs. 13,326 crore. Now, on a sequential basis,

00:13 the bottom line is also expected to decline by 7%. Now, the fall in net profit of the public

00:19 sector bank is attributed to higher operating expenses on account of wage revision. This is

00:24 also expected to result in a degrowth in the pre-provision operating profit of the bank,

00:31 which is likely to be around 7% year-on-year. The net interest income is also expected to grow

00:38 4.9% year-on-year with net interest margin declining by 6 basis points quarter-on-quarter.

00:45 Yes, securities expects the compression in NIM to come from the fact that the rise in

00:51 cost of deposits will outpace the yield on advances. The interesting bit here is that

00:56 the loan growth is expected to grow 14% year-on-year on the back of good traction in

01:02 home loans and improvements in the digital lending segment. On credit costs as well,

01:07 the analysts are expecting that it will be a stable quarter with moderation in slippages.

01:12 However, the provisions may rise meaningfully in Q3 as it would be a function of not only

01:18 slippages but also of recoveries, upgrades and the already existing provision buffers.

01:23 Cost to asset ratio is also likely to remain elevated due to digital spends. Now, what

01:28 analysts are expecting that the gradual pickup in CAPEX plans is likely to boost the corporate

01:34 loan book of the public sector bank.

01:38 [Music]

SBI Q3 Preview: Key Expectations | NDTV Profit

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