Due to flat increase in net interest income (NII), State Bank of India (SBI) is anticipated to record a single-digit decline in profit for the March quarter. Analysts predicted a sequential decline in net interest margin. According to YES Securities, loan growth is expected to be 3.5% sequentially. It stated that because the increase in the cost of deposits is more than the yield on advances, NII growth will be somewhat slower than average loan growth.

NIM will consequently progressively decline somewhat. Growth in sequential fees will largely correspond with growth in loans. Due to a decrease in employee spending growth and a decrease in wage-related allowances, Opex would be somewhat lower sequentially. On a sequential basis, slippages would be essentially stable. A low base in 3Q will cause provisions to climb considerably on a sequential basis, the statement stated.

This brokerage projects a 7.1% YoY decline in profit to Rs 15,516 crore on a 1.2% YoY increase in NII to Rs 40,878 crore.

Profit decreased 3.4% YoY to Rs 16,127 crore, according to Motilal Oswal Securities, while NII increased 2.6% YoY to Rs 41,460 crore. SBI stated that Opex would stay under control and that earnings might increase gradually because salary provisions were made in Q3FY24. Motilal Oswal anticipates robust company development and largely stable asset quality. It noted that the margin might have a small downward skew.

Meanwhile, Nuvama reports a 33% decline in profit to Rs 11,071 crore. This brokerage anticipates 4% quarterly increase in loans and 3% quarterly growth in deposits.

"We anticipate a drop in opex and high QoQ growth in other income. Higher QoQ provisions are anticipated. Margin may slightly decrease," it stated. Over the previous six months, SBI shares have increased by 40%. The PSU bank stock has increased by 26% so far in 2024.