Brokering house Centrum Wealth in its earnings preview said the Rajnish Kumar-led bank is expected to report yet another quarter of loss for January-March.
NII (net interest income) is expected to decline by 6 per cent year-on-year to Rs 19,770 crore.
Indias top bank had reported healthy treasury gains in the year ago period. Similar quantum of gains seems unlikely in Q4FY18, Centrum said.
NII is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors.
"We expect operating profit at Rs 13,870 crore to decline 19.9 per cent YoY," the brokerage added says.
RBIs move to spread losses over the next four quarters is expected to provide it some headroom
Another brokerage Motilal Oswal expects loan growth to be muted (+4 per cent QoQ). NII is expected to be sequentially flat, as interest reversals are expected to keep yields under pressure and loan growth sluggish. Stress additions should continue to be high at 6.5 per cent. Commentary on RBI resolutions with respect to large accounts is a key monitorable, it added.
"We expect credit cost to remain elevated, led by continued stress additions and focus on shoring up PCR (Provisioning Coverage Ratio). The stock trades at 0.9x FY19E consolidated BV and 13.4x FY19E consolidated EPS (earnings per share)," MOSL adds.
Axis Capital expected the bank to post a loss of Rs 1,210 crore against Rs 2,810 crore profit YoY. The brokerage saw some pickup in loan growth.
"Asset quality will remain weak, as slippages from certain lumpy exposures and change in RBI regulation will stay elevated. The bank could use the reversal of MTM provision to shore up overall provisions," it added.