1. SBI may report 50% fall in net profit in Q4, loan growth expected to be subdued

SBI may report 50% fall in net profit in Q4, loan growth expected to be subdued

For Q4FY16, KR Choksey Shares and Securities is expecting 44.10 per cent year-on-year and 87.70 per cent quarter on quarter fall in standalone net profit at Rs 2,093.6 crore.

By: | Updated: May 27, 2016 3:32 PM
SBI Q4 results SBI Q4 results: According to market experts, State Bank of India (SBI) may report around 50 per cent year-on-year fall in net profit figures for the quarter ended March 2016. (Source: IE)

State Bank of India (SBI) will announce its financial results for the fourth quarter ended March 31, 2016 on Friday. According to market experts, State Bank of India (SBI) may report around 50 per cent year-on-year fall in net profit figures for the quarter ended March 2016.

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The country’s largest lender reported 18.42 per cent rise in consolidated net profit figures at Rs 4,694.11 crore for the quarter ended March 31 2015 against Rs 3,963.82 crore in the corresponding quarter a year ago. On standalone basis, SBI reported 23.06 per cent year-on-year rise in standalone net profit at Rs 3742 crore for the quarter ended March 2015.

For Q4FY16, KR Choksey Shares and Securities is expecting 44.10 per cent year-on-year and 87.70 per cent quarter on quarter fall in standalone net profit at Rs 2,093.6 crore.

According to the brokerage house, margins are expected to be under tad pressure on account of interest reversals. However, recoveries should be better off during Q4FY16. Net interest income (NII) of State Bank of India may jump 1.6 per cent yoy and 9.8 per cent qoq.

Reliance Securities believes, SBI Q4 net profit may plunged by 54.40 per cent yoy to 1,706.80 crore. Operating profit of the lender may decline by 16.2 per cent yoy to Rs 10,397.30 crore from Rs 12,409.36 crore. Reliance Securities in a research note said, “SBI loan growth is expected to remain below the industry growth and NIM is expected to come off from the 3QFY16 level due to full impact of higher slippages along with reduction in base rate,”

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