Earnings preview: SBI Q2 profit may fall 80%; provisions to remain elevated

The bank's domestic loan growth is likely to improve (but below industry average), driven by retail loans and some corporate lending. However, international book is expected to decline.

State Bank of India (SBI) is scheduled to announce its September quarter results on Monday. After reporting a net loss of Rs 48.75 billion for Q1FY19 (April – June 2018), SBI is expected to post profit for the quarter under review. However, the numbers are likely to be lower on year-on-year (YoY) basis. Analysts at Sharekhan, for instance, see 81 per cent drop in net profit at Rs 3 billion. Emkay Global, too, expects the profit to come in at Rs 9.2 billion, down nearly 42 per cent YoY.  

Here is how analysts see the bank performing on key parameters:

LOAN GROWTH

The