State Bank of India(SBI) share price was up 3% in the morning trade on June 5 ahead of the Bank's Q4 results.

The stock is one of the top indexes gainers and is also one of the most active stocks on NSE in terms of volumes. 

The scrip has jumped over 17% in the last 15 days and was quoting at Rs 180.80, up Rs 6.75, or 3.88%. It has touched an intraday high of Rs 180.85 and an intraday low of Rs 176.

The country's largest lender is likely to report healthy growth in March quarter profit, boosted by stake sale in SBI cards through IPO, recovery from some NPA accounts, and lower tax cost.

According to brokerages, the profit growth could be in the range of 600-1000% in Q4 compared to the same period last year, while net interest income is likely to be in double digits but lower than normal due to moderate growth in advances and steady net interest margins.

According to HDFC Securities, profit is expected to grow 10% QoQ, partially aided by the lower tax rate. "On a YoY basis, PAT is expected to grow 7.3x. NII may grow 12% YoY and loan growth is expected to moderate to around 3% YoY.

       

Provisions are expected to be lower due to recovery though there could be some COVID-19 impact, while asset quality is likely to be stable through slippages may remain elevated a bit.

"We expect a volatile performance due to recovery in NPLs( Alok Industries and a few smaller ones) as the accounting treatment is likely to be different for each recovery. Loan growth will be subdued at around 7% YoY and NIM unchanged QoQ at around 2.9%. Reported NIM would have one-off from NPL recovery. Treasury income will include gains on account of stake sale in SBI cards," said Kotak Institutional Equities which sees 1007% YoY growth in profit and 13.5% rise in net interest income in Q4.

State Bank of India plans to raise upto USD 1.5 billion to FY20-21, the bank said in a notification to BSE on June 4. The executive committee of the central board will meet on June 11 to consider the proposal of "long term fundraising in single/multiple tranches through a public offer and/or private placement of senior unsecured notes in US dollars or any other convertible currency during FY20-21", the bank said.