SBI stock hits record high ahead of Q2 earnings; here's what to expect

Shares of State Bank of India (SBI) hit a record high ahead of the public sector lender's Q2 earnings set to be announced today. SBI stock reached an all-time high of Rs 528.25 in early trade against the previous close of Rs 521.70 on the BSE. The stock opened higher at Rs 524.90.

The stock has gained 4.78% in the last 4 days. SBI stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The large cap stock has gained 156% in one year and risen 91% since the beginning of this year.

In a month, the share has climbed 16.37%.

Total 3.04 lakh shares of the bank changed hands amounting to turnover of Rs 15.99 crore on BSE. Market cap of the lender rose to Rs 4.68 lakh crore.

Here's a look at what brokerages expect from the lender's Q2 earnings.

Brokerage Prabhudas Lilladher sees SBI's profit after tax (PAT) zooming 102.5 per cent to Rs 9,263.3 crore for the quarter ended September 2021.

This amounts to a 42 per cent growth over Rs 6,504-crore profit logged in Q1FY22. In Q2 of the last fiscal, the bank reported a profit of Rs 4,574.2 crore.  

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Global brokerages Nomura and HSBC see the PAT to rising 87 per cent and 73 per cent year-on-year, respectively.

However, Emkay Global is not so bullish on SBI's Q2 earnings. It expects the bank to log a 58.5 per cent YoY rise in net profit at Rs 7,249.80 crore compared with Rs 4,574.20 crore in the same quarter last year.

Net interest income (NII) is seen rising 2.4 per cent to Rs 28,856.30 crore from Rs 28,181.50 crore on an year-on-year basis.

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NIM is expected at 3 per cent against 2.9 per cent in the June quarter and 3.1 per cent in the year-ago quarter.

"Healthy net interest margin (NIMs), recovery from DHFL, and lower loan provisioning should lead to strong profitability, partly offset by the hit on NPS/Pension for retired personnel," said analysts at Emkay Global in their earnings preview report. Slippages should remain moderate, with limited NPAs in retail, said Emkay Global.

Nirmal Bang Institutional Equities expects Q2 profit to come at Rs 7,646.60 crore, rising 67.2 per cent YoY. NII is likely to climb 3.8 per cent YoY to Rs 29,263.30 crore. Pre-provision profit is expected at Rs 18,792.30 crore, up 14.2 per cent.

Prabhudas Lilladher sees a 102 per cent rise in profit at Rs 9,263 crore. It expects the NIM at 3.05 per cent while gross NPA is seen at 5.83 per cent.

"SBI should continue to report better NII growth of 3.5 per cent YoY, loan growth of 8 per cent on lower interest reversals. We build higher slippages from Agri and SME segments, while we build in recovery from DHFL," Prabhudas Lilladher said.

Meanwhile, banking stocks were among the top gainers in trade today ahead of SBI's earnings.

Bank Nifty was trading 88 points higher at 40,026 and BSE bankex rose 193 points to 45,731.

In broader markets, Sensex climbed 239 points to 60,269 and Nifty gained 80 points to 17,969 in early trade.