SBI falls 2% ahead of Q1 results; analysts peg Q1 loss at Rs 30 crore

Though a loss, it will be substantially lower than the net loss of Rs 7,718 crore reported in the fourth quarter ending March 2018. In the June quarter last year, SBI had reported a net profit of Rs 2,005.5 crore.

Shares of State Bank of India fell over 2 percent on Friday morning as investors chose to book some profits as well as await its results announcement for the June quarter.

The stock touched an intraday high of Rs 317.70 and an intraday low of Rs 310.00.

India’s largest lender is likely to post a net loss of Rs 30.6 crore for the first quarter ending June 2018 due to a jump in the provisions, as per Reuters’ analyst poll estimate.


Though a loss, it will be substantially lower than the net loss of Rs 7,718 crore reported in the fourth quarter ending March 2018. In the June quarter last year, SBI had reported a net profit of Rs 2,005.5 crore.

Provisions during the quarter are projected to jump to Rs 13,829 crore from Rs 11,266 crore in June 2017 and from Rs 24,080 crore in March quarter, as per Reuters' estimates.

Brokerage firm Motilal Oswal though has conflicting estimates. It expects the bank to post a 16 percent year-on-year (YoY) drop in net profit to Rs 1,683 crore.

The bank will be announcing its results post noon (12 pm) on Friday.

As per Reuters’ estimates, net interest income (NII) or the difference between interest paid on deposits and interest earned on loans is estimated to increase by 17 percent YoY to Rs 20,584.5 crore from Rs 17,606 crore in the same quarter a year ago.



Other income or non-interest income is expected to come to a tad lower at Rs 730 crore from Rs 800.5 crore from last year.

Motilal Oswal expects NII to stay flat sequentially. “We expect loan growth to be muted (+2% QoQ) but pick up slowly from the previous few quarters… NII is expected to be sequentially flat, as interest reversals are expected to keep yields under pressure and loan growth remains sluggish,” the Motilal report said.

Stress additions should moderate to 2.3 percent levels as most of it has been recorded in prior years, the Motilal report said.

It expects gross non-performing assets (GNPAs) to reduce to 10.7 percent of total loans from 10.9 percent in the March quarter and be slightly higher from 10.0 percent in the June quarter.

Net NPAs is also expected to be lower at 5.6 percent from 5.7 percent in March and 6.0 percent in June last year.

The stock has gained 19 percent in the past one month, while in the past three days, it rose 3 percent. At 09:30 hrs State Bank of India was quoting at Rs 311.65, down Rs 4.80, or 1.52 percent, on the BSE.

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Source: https://www.moneycontrol.com/news/business/markets/sbi-falls-2-ahead-of-q1-results-analysts-peg-q1-loss-at-rs-30-crore-2828531.html