New Research Reports

State Bank of India (SBI) reported Q3FY25 PAT of INR 168.9bn (up 84% YoY) led by sharp opex reduction (off high base) and contained credit costs, while revenue growth was muted (up 2% YoY).

State Bank of India saw a soft Q3 on subdued NII and miss in other income. The bank’s dominant market position, best-in-class management and strong digital abilities would aid in maintaining its market share, while delivering healthy profitability.

Q3 numbers were a mixed bag. NII at Rs. 41,446 crore (below estimate) grew by 4% y-o-y/ flat q-o-q. NIMs declined by 13 bps q-o-q to 3.01% led by higher cost of funds.

Pearl in an oyster

Punjab National Bank (PNB) reported a healthy 3QFY25 PAT of INR45.1b (103% YoY growth, 24% beat), primarily driven by provisioning reversal.

Strong asset quality trends continued to drive earnings and RoA although operating performance was muted. NII at Rs. 11,032 crore (above estimates) grew by 7% y-o-y/5% q-o-q. NIMs were broadly stable, improved by 1 bps q-o-q to ~2.93%. Interest on IT refund & interest income from NPA recoveries,

Decent core operating performance and modest provisioning (~40bps) led to the Bank of Baroda’s strong profitability in Q3, its RoA coming at 1.15%. Asset quality improved.

BOB reported a mixed performance in Q3FY25 as core operating performance was weak while asset quality trends were stable. Net interest income (NII) at Rs. 11,417 crore (below estimates) grew by 3% y-o-y/ down 2% q-o-q.

Improved operating performance and moderate provisions led to Indian Bank’s strong profitability, with RoA up 6bps q/q to 1.39%. Headline asset quality and PCR improved. Ahead, we expect slippages to be modest. With stress from the legacy book recognised, the focus now shifts to profitability.