SBI Q3 Results Review - Upside Risks To Core PPoP In FY25 Due To Lower Staff Cost: Prabhudas Lilladher

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..Prabhudas Lilladher Report.State Bank of India reported a good quarter; while net interest income beat due to better net interest margin and loan growth. Adjusted for one-time impact (Rs 71 billion) of pension liability and benefit of exgratia, core pre-provision operating profit/profit after tax was 4.8%/7.0% ahead of our estimate.Credit growth at 5.2% QoQ was best-in-class. While bank guided for 14-15% loan growth, we expect SBI to grow at 13% compound annual growth rate over FY24-26E due to tight system liquidity. We have cut loan growth by 1% for all coverage banks except SBI, given upside risks as the following levers may support credit offtake viz. low loan-to-deposit ratio at 74%,adequate liquidity coverage ratio at 131% andsufficient CET-1 at 11% (post RBI norms on re-classification of investments). Staff cost for FY24E may be Rs 773 billion (+35% YoY) due to wage revision impact of Rs 180 billion. There are downside risks to our staff cost estimate for FY25E at Rs 800 billion (+4% YoY). We remain positive on SBI and keep our multiple unchanged at 1.4 times on September-25E adjusted book value and maintain SOTP based target price at Rs 770. Retain ‘Buy’..Click on the attachment to read the full report:.SBI Q3 Results Review - Core Performance On Track; One-Offs Dent Earnings: Motilal Oswal.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 - Upside Risks To Core PPoP In FY25 Due To Lower Staff Cost: Prabhudas Lilladher

Headroom on loan-to-deposit ratio to cushion loan growth; staff cost may decline for FY25.

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SBI Q3 Results Review - Upside Risks To Core PPoP In FY25 Due To Lower Staff Cost: Prabhudas Lilladher

Headroom on loan-to-deposit ratio to cushion loan growth; staff cost may decline for FY25.

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