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SBI Maintains Steady Earnings Amid Market Turbulence
4 Nov
Summary
- SBI stock gains 20% in 6 months, 14% in 1 year
- Loan growth expected at 11.6%, deposits up 9%
- Asset quality likely to remain stable, NPA ratio steady
On November 4, 2025, State Bank of India (SBI) is set to announce its second-quarter results, and several brokerages anticipate the bank will post largely unchanged earnings growth compared to the same period last year.
Despite the overall weak market sentiment, SBI's stock has been trading in the green in the near term, gaining nearly 20% in the past six months and 14% in the last year. In fact, the PSU banking stock has more than doubled investors' money, soaring over 331% in the past five years.
Analysts at Axis Securities project a year-on-year rise of 12% in advances and 9% in deposits for the bank. However, they caution that margin pressures may impact the overall performance, potentially leading to muted growth in net interest income (NII). SBI's NII is estimated to decline by 3% year-on-year and 1.4% quarter-on-quarter, reaching ₹40,499 crore.
Motilal Oswal Financial Services (MOFSL) also anticipates a largely flat quarter for SBI, with NII expected to decline by 2.5% year-on-year to ₹40,580 crore, and pre-provision operating profit (PPOP) and net profit declining by 8% and 9% year-on-year, respectively.
Despite these challenges, the bank's loan growth is expected to be around 11.6% year-on-year, while deposits may rise by 9%. Importantly, asset quality is likely to remain stable, with the gross non-performing asset (GNPA) ratio unchanged at 1.8% and the net NPA (NNPA) steady at 0.5%.
