SBI Q1 FY25 Results Preview: India’s largest bank likely to log 4.6% fall in PAT; NIM may shrink by 10 bps

SBI Q1 FY25 Results Preview: State Bank of India (SBI) – the country’s largest lender by assets – is all set to report its financial results for the April-June period. Analysts expect the PSU bank to stage a mixed financial performance for the three-month period with growth in interest income but an impact on profitability on account of rising provisions amid higher agricultural slippages.    

According to Zee Business, SBI is estimated to register a standalone net profit of Rs 16,100 crore for the quarter ended June 30, which translates to a decline of 4.6 per cent compared with the corresponding period a year ago. The analysts expect the banking behemoth’s net interest income (NII) – or the difference between the interest earned and the interest paid – to grow 8.7 per cent to Rs 42,300 on a year-on-year basis. 

The state-run lender is estimated to log a net interest margin (NIM) – a key measure of profitability – of 3.2 per cent for the first quarter of the current financial year, 10 basis points compared with the year-ago period, according to the research.

Zee Business analysts peg SBI’s growth in loans at 14 per cent and in deposits at 14-16 per cent for the three-month period.

Asset quality 

SBI’s likely to stage a largely stable asset quality, with gross non-performing assets (GNPAs) – or gross bad loans – as a percentage of total loans at 2.20 per cent for the June quarter as against 2.24 per cent for the previous three months, according to the research. 

The analysts expect its net non-performing assets (NNPAs) to come in at 0.50 per cent as against 0.57 per cent three months ago. 

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