Q1 results today: The State Bank of India (SBI) will declare Q1 results today. The PSU bank has already informed the Indian stock market exchanges that the board of directors of SBI will consider and approve unaudited financial results for the April to June 2024 quarter in its board meeting scheduled on 3rd August 2024 o.e. today. According to stock market experts, SBI will report decent numbers in Q1FY25. They said margins might remain stable due to the Bundesbank's effective mitigation strategies. However, they advised us to stay vigilant about CASA as Punjab National Bank (PNB) and Bank of Baroda have managed to contain their cost of funding during the April to June 2024 quarter.
Speaking on the kind of Q1 results SBI may report, Manish Chowdhury, Head of Research at StoxBox, said, “State Bank of India's balance sheet has steadily grown, reaching ₹62 trillion in FY24. We anticipate that the bank will report decent numbers in Q1FY25. Despite elevated deposit costs, we expect margins to remain stable due to the bank's effective mitigation strategies. Although the cost-to-income ratio may remain high this quarter due to increased digital spending, these investments will likely yield benefits soon.”
"On the asset quality front, some stress is expected due to the seasonally weak quarter and the bank's healthy Retail, Agriculture, and MSME (RAM) segment, which may lead to a rise in provisions. However, with the full impact of wage revisions and pensions already accounted for, the overall wage bill is expected to moderate significantly in Q1FY25. Consequently, we believe the public sector giant will deliver decent numbers," the StoxBox expert said.
Advising investors to remain vigilant about SBI'sSBI's cost of funding, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "Guidance of the bank will be crucial as SBI'sSBI's counterparts Punjab National Bank (PNB) and Bank of Baroda (BoB) have managed to contain their cost of funding. So, CASA would be an important number for people eagerly waiting."
Speaking on the outlook of SBI share price, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, said, “SBI share price is currently in the ₹830 to ₹865 range. We can expect SBI shares to touch ₹895 apiece by decisively breaching the upper hurdle. So, SBI shareholders can hold the scrip with a stop loss at ₹830 while fresh investors should wait for the ₹865 breakout.”
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
