On Friday, all eyes will be on the State Bank of India (SBI) after the bank announced a massive 84% increase in its profit for the December quarter! SBI made ₹16,891 crore this quarter, compared to ₹9,163 crore last year, beating what experts expected, which was ₹16,219 crore.
The bank’s net interest income (NII) went up by 4.09% compared to the same quarter last year, totaling ₹41,620 crore. However, the net interest margin (NIM), which shows how much the bank earns from loans after paying interest on deposits, dipped slightly to 3.15%.
SBI’s operating profit (the money the bank makes from its main activities) grew by 15.81%, reaching ₹23,551 crore.
SBI’s interest income for this quarter was ₹1,17,427 crore, marking a 10% increase from last year.
Credit Growth:
SBI’s credit growth (the money they lend out) was 13.49% this year, with domestic loans growing even more at 14.06%. The total loans given by the bank now surpass ₹40 lakh crore.
Deposits:
SBI’s overall deposits rose by 9.81%. The bank’s CASA deposits (Current Account Savings Account) went up by 4.46%, and the CASA ratio is now at 39.20% as of December 31, 2024.
Asset Quality:
The bank’s asset quality improved, with gross non-performing assets (NPA) falling to 2.07%. This means fewer people are defaulting on loans, which is good news!
What Analysts Are Saying:
– Nuvama: They say “Buy” SBI shares with a new target price of ₹950, down from ₹1,026. The bank handled credit costs well but missed on NIM.
– Macquarie: They recommend “Outperform” with a target price of ₹700. They pointed out that while operating profit went down, credit costs were lower.
– Jefferies: They also say “Buy” with a target price of ₹970. They see good deposit growth as positive, even if loan growth is slowing down.
Disclaimer: These views are those of financial experts and do not reflect the opinions of NiftyStat.
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