NEW DELHI: State Bank of India (SBI) may report up to 100 per cent surge in net profit for September quarter on a marginal rise in net interest income (NII). Net interest margin (NIM) is seen healthy at 3-3.1 per cent. Analysts said healthy NIM, recovery from DHFL and lower loan loss provision should lead to strong profitability, which may partly be offset by the hit on NPS/pension for retired personnel.

Slippages should remain moderate, with limited NPAs in retail, said Emkay Global, which said the stress in SME could be taken out via restructuring.

This brokerage is expecting the bank to report 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. It sees NII rising 2.4 per cent to Rs 28,856.30 crore from Rs 28,181.50 crore YoY. NIM is seen at 3 per cent compared with 2.9 per cent in June quarter and 3.1 per cent in the year-ago quarter.

Nirmal Bang Institutional Equities is pegging profit at Rs 7,646.60 crore, up 67.2 per cent YoY. NII is seen growing 3.8 per cent YoY to Rs 29,263.30 crore. Pre-provision profit is seen at Rs 18,792.30 crore, up 14.2 per cent.

The bank is seen reporting a loan growth of 8.1 per cent YoY to Rs 24,80,546.20 crore and deposit growth of 8.6 per cent at Rs 37,69,359.80 crore. Credit cost is seen at 1.4 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.

This brokerage is expecting a 102 per cent surge in profit at Rs 9,263 crore. It sees NIM at 3.05 per cent while gross NPA is seen at 5.83 per cent.