SBI Q3 Results 2024: Expectations High as Bank Prepares to Release Financial Performance

State Bank of India (SBI), India’s leading banking institution, is gearing up to announce its much-awaited financial performance for the third quarter of 2024. The board of directors will convene a meeting on February 3rd to consider and approve the unaudited results, following which a conference call will be held at 5:00 PM to discuss the outcomes.

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The Central Board of SBI, in compliance with the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, will gather in Mumbai to evaluate the financial results for the quarter and nine months ending on December 31, 2023. This announcement comes as the bank aims to provide transparency and meet its regulatory obligations.

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Analysts and experts are eagerly anticipating SBI’s Q3 results and have shared their expectations. Shreyansh Shah, a Research Analyst at StoxBox, predicts that although there may be a slight decline in Net Interest Margins (NIMs) due to high cost of funds, overall profitability is expected to witness mid-teen-digit growth. This growth is attributed to increased disbursals of advances backed by elevated infrastructure spending.

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SBI’s significant other income growth, driven by the bank’s focus on optimizing its vast branch network for cross-selling opportunities, is also expected to be a highlight of this quarter’s performance. Sandeep Pandey, Founder & Director at Basav Capital, believes that SBI’s corporate lending business will play a crucial role in maintaining profitability due to the government’s emphasis on infrastructure and rising expenditure in the sector.

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It is worth noting that SBI has a large market share in salary account services, and it is anticipated that the CASA (Current Account, Saving Account) and CD (Certificate of Deposit) ratios will not be a cause for concern. Furthermore, lower slippages in FY24 so far indicate that credit costs will remain below the targeted 1% mark, leading to improvements in Return on Assets (RoAs).

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However, analysts caution that SBI’s anticipated higher provisions due to wage revision could potentially impact the bank’s performance. Nevertheless, overall market sentiment remains positive, and investors are advised to consult certified experts before making any investment decisions.

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In an unrelated but notable event, Finance Minister Nirmala Sitharaman recently delivered the Union Budget speech, outlining key fiscal policies and initiatives.