SBI Q2 Results 2023 Preview: Net profit to rise 2.3%, NII growth seen at 11% YoY

In this article, we will talk about the SBI Q2 Results. State Bank of India (SBI) is an Indian multinational public sector bank and financial services statutory body. It’s headquartered in Mumbai, Maharashtra. SBI is the country’s largest lender and is fixed to declare its September quarter results today, 4 November 2023. SBI has been anticipated to report a quiet quarter with a marginal rise in net profit and net interest margin remaining under pressure. Currently, this news has been gaining huge attention from the people and now many people are curious to know about the news. Here we have more information about the news.

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SBI Q2 Results 2023 Preview

The public sector lender SBI has been expected to report a net profit of ₹13,569 crore for the second quarter of FY24, seeing a moderate increase of 2.3% from₹13,264.5 crore in the exact quarter of the previous fiscal year, as per intermediate estimates of five brokerages.SBI’s net interest income (NII) in Q2FY24 has been able to grow 10.7% year on year (YOY) on the back of 12% loan growth. NII is assessed to be at ₹38,948 crore in the quarter finished September 2023 as against ₹35,183.4 crore in the year-ago quarter. Scroll down to the next page for more information about the news.

As per the report, Net interest margin (NIM) during the quarter is predicted to contract by 10 basis points (bps) sequentially. The bank is predicted to see progress in asset quality sequentially backed by a low-stressed asset pool while prices have been likely to remain stable. Kotak Institutional Equities stated “We expect operating profit growth to be flat YoY (higher operating expense and NIM pressure). We have been making 10% YoY NII growth on the back of 12% loan development. You are on the correct page for getting more information about the news, so read the article till the end.

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Meanwhile, we have been building NIM to decline 10bps QoQ but do see a possibility of stable performance, given the structure of the loan book and little need for deposits to fund this growth”. On the asset quality front, SBI’s gross non-performing investments (GNPA) in the September quarter FY24 are expected to fall by 2.76%, 19 bps QoQ to 2.58%. The net NPA ratio is predicted to remain stable at 0.7% sequentially. The bank’s deposit growth in Q2FY24 is estimated at 9.3% while loan increase is expected to be 13.3% YoY. Here we have shared all the information that we had. Stay connected with us for more updates.

Gurleen Kaur

I'm a science graduate from the Ahmadu Bello University, Nigeria. My passion for writing has brought me to into the field of content.