SBI Q3 Net Likely To Get A Boost From Treasury Gains, Shares Jump
Shares of state-owned lender State Bank of India and Bank of Baroda gained as much as 2 per cent and 3 per cent respectively on Friday ahead of their earnings announcement for the December quarter, which is likely to get a boost from treasury gains. Analysts polled by NDTV Profit expect SBI, the biggest lender in India according to assets, to report a net profit of Rs 2,513 crore in Q3, up 125 per cent annually from Rs 1,115 crore in the corresponding quarter of last fiscal.
Meanwhile, SBI's NII or net interest income, which is the excess of interest earned on advances over interest paid on deposits, is seen rising 7 per cent to Rs 14,513 crore, compared to Rs 13,606 crore last year.
Loan growth of SBI is likely to be muted at 2 per cent in Q3, hurt by the government's decision to demonetise Rs 500 and Rs 1000 rupee notes, which represented around 86 per cent of the total currency in circulation at that point of time.
Analysts expect SBI's non-interest income, which includes treasure gains from its bond holding as a part of SLR requirement, to jump 56 per cent in Q3.
On the asset quality front, SBI's gross non-performing assets as a percentage of total advances, is seen rising to 7.4 per cent as against 7.1 per cent in the September quarter. On an absolute basis, it is likely to be at Rs 1.08 lakh crore compared to Rs 1.06 lakh crore sequentially.
Meanwhile, Bank of Baroda is seen reporting a net profit of Rs 636 crore compared to a net loss of Rs 3,342 crore last year, according to analysts polled by NDTV Profit.
Bank of Baroda's net interest income is seen rising to Rs 3,403 crore compared to Rs 2,705 crore last fiscal.
On the other hand, Bank of Baroda's gross non-performing assets is seen rising to Rs 43,400 crore, compared to Rs 42,900 crore in September quarter.
As of 11.35 am, SBI shares were up 1.72 per cent at Rs 280.60 and Bank of Baroda traded 2.69 per cent higher at Rs 189 compared to 0.66 per cent gain in the Nifty Bank index.
