SBI Q3 preview: Profit could take hit due to DHFL, interest income may rise

Analysts at Edelweiss expect divergence and provisions from DHFL to off-set the recoveries from the resolution of the Essar Steel account.

Despite resolution of Essar Steel, State Bank of India (SBI) may report subdued December quarter (Q3FY20) numbers as analysts expect slippages to rise courtesy Dewan Housing Finance Corp Ltd (DHFL). They, however, expect operating performance in terms of net interest income (NII) to improve during the recently concluded quarter. The bank is slated to report its Q3FY20 earning on Friday, January 31. 

At the bourses, the stock has underperformed in the past six months. The stock of the lender has slipped 3.4 per cent during the period under review, as compared to a rise of 10 per cent in the