SBI Q3 Results Review - Loan Growth Momentum Intact, Pension Blip Impacts Net Profit: Axis Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.With growth prospects remaining intact and State Bank of India confident to grow assets under management at 14-15% and deposits at 12-13%, we model in advances growth of 13.5%+ over FY24-26E. Further, the management is confident of maintaining domestic margins at current levels going forward. However, margins may be impacted by 2-3 basis points due to an increase in cost of funds. Opex is expected to remain elevated due to provision for wage revision. Another provision of Rs 5,408 crore will be recored in Q4 FY24 for increase in wage provision from earlier 14% to 17%. However, incremental productivity through digital is expected to aid pre-provision operating profit. Further, consistent improvement in asset quality, we believe, would keep credit costs under control. Among PSU banks, SBI with a healthy provisio coverage ratio, adequate capitalisation, a strong liability franchise, and an improved asset quality outlook remains the best play of the resilient Indian economy..Click on the attachment to read the full report:.SBI Q3 Results Review - Upside Risks To Core PPoP In FY25 Due To Lower Staff Cost: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

SBI Q3 Results Review - Loan Growth Momentum Intact, Pension Blip Impacts Net Profit: Axis Securities

Margins likely to remain at current levels going forward

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SBI Q3 Results Review - Loan Growth Momentum Intact, Pension Blip Impacts Net Profit: Axis Securities

Margins likely to remain at current levels going forward

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