State Bank of India (SBI) is likely to post a 66 per cent year-on-year (y-o-y) growth in the fourth quarter (Q4FY23) net profit on the back of healthy growth in net interest income, jump in fee income, and lower loan loss provisioning, as per analyst estimates.

India’s largest bank is expected to report a net profit of about ₹15,100 crore, according to broking firm estimates.

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The Bank will announce its quarterly results later today.

SBI reported its highest-ever quarterly standalone net profit at ₹14,205 crore in the third quarter of FY23 on the back of healthy growth in net interest income and non-interest income, and a sharp decline in loan loss provisions. Asset quality had also improved, with GNPAs dipping below the ₹1-lakh-crore mark for the first time since 2016.

Analysts see SBI’s net interest income growing about 27 per cent to ₹39,500 crore in the fourth quarter.

Loan growth is expected at around 15-16 per cent.

Strong numbers

Shreyansh Shah, Research Analyst, Stoxbox, expects SBI to report a strong set of numbers in the fourth quarter, with high-teen growth in loans even as deposits are expected to grow in high single digits, translating into healthy NII growth.

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Moreover, better recoveries and some moderation in slippages are likely to aid in an improvement in the asset quality, Shah said.

Kotak Institutional Equities expects slippages at about 1.5 per cent of loans, mostly driven by small and medium enterprises, and retail, while corporate loans will continue to hold up relatively well.

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