SBI might post net profit of ₹4,851 crore for Q3 FY21 | Business Upturn

SBI might post net profit of ₹4,851 crore for Q3 FY21


State Bank of India (SBI) who is set to declare its results for the third quarter of FY21, on Thursday, is expected to post a net profit of 4,850.5 crore in the three months to December 2020 which is 13% lower than 5,583.36 crore in the same period last year.

“While collection trends have improved to around 97%, restructuring of only up to 1% of loans is expected. Furthermore, legacy issues in the corporate non-performing asset (NPA) cycle are now largely behind, and the bank carries a healthy provision coverage ratio (PCR) of about 88% on corporate NPAs,” a report said on 7 January.

As the uncertainty brought about by the pandemic has receded significantly, analysts at Motilal Oswal believe that SBI appears well-positioned to report a strong uptick in earnings.
Shares of SBI on the BSE closed at 335.85 on Wednesday, up 0.8% from its previous close.
Meanwhile, ICICI Direct Research expects loan growth of 5.2% on a year-on-year (y-o-y) basis to 23.16 trillion and 10% y-o-y for deposits. It said in a note on 8 January that non-interest income or other income is seen at 7,700 crore in the December quarter.