Key Points
India's leading lender SBI is likely to post muted earnings for the third quarter, when it reports results later today..
The public sector bank was hit by higher operating expenses due to wage revision-related costs during the quarter under review...
SBI has guided for a shortfall of Rs 10,000 crore towards the new wage agreement, which will be spread over two quarters of H2FY24..
For instance, Kotak Equities expects NIMs to compress 10 bps quarter-on-quarter, but does see a possibility of stable performance, given the structure of the loan book and negligible need for deposits to fund this growth...
The Bank is likely to see lower recovery and upgrades as well.. Asset qualitySBI is likely to report a stable asset quality for the quarter ended December and even a marginal improvement..
