India’s State Bank of India (SBI), the country’s largest public sector bank, is all set to announce its third-quarter results (SBI Q3 2025 Results) for the financial year on February 6, 2025. The bank is expected to report a robust double-digit growth in its net profit for the December 2024 quarter.
Market analysts forecast that SBI’s standalone net profit for the period could see a significant increase of 58-65% YoY, reaching a range of ₹14,500 crore to ₹15,250 crore. This growth is likely attributed to strong loan and deposit performance, coupled with a stable asset quality.
SBI Q3 2025 Results
However, sequentially, the net profit may dip slightly, as the bank had reported a higher profit of ₹18,331 crore in the previous quarter. On the other hand, Net Interest Income (NII) is projected to grow 4-6% YoY, with expectations to reach between ₹41,600 crore and ₹42,440 crore. Analysts are also optimistic about the continued healthy growth in SBI’s loan book and deposits.
Investors will be keen to hear management’s commentary on credit growth trends in the broader banking industry, alongside important financial indicators such as loan and deposit growth, Net Interest Margin (NIM), and the state of gross and net non-performing assets (NPAs).
Before the results announcement, SBI shares closed at ₹766, reflecting a slight drop of 1.6% on February 5.
Technical Analysis
At present, SBI’s stock is trading below all of its critical Exponential Moving Averages (EMAs), including the 21-day, 50-day, and 200-day EMAs, signaling potential bearish sentiment. Furthermore, the daily chart shows the formation of a bearish engulfing candle, which suggests a weakening trend. However, it’s crucial to recognize that the bearish engulfing pattern is considered a reversal signal, and its confirmation depends on the next candle closing below the low of the engulfing pattern. This would solidify the bearish outlook.
Options Outlook
As of the February 27th expiry, SBI’s at-the-money (ATM) options are priced with a strike price of ₹770, where both the call and put options are valued at ₹47. This indicates a potential price movement of approximately ±6.1% from the closing price on February 5th.
To gain deeper insights, let’s explore how SBI’s stock has historically behaved around its earnings announcements.
Options Strategy for SBI Q3 2025 Results
The options data for SBI’s February 27th expiry suggests a potential price fluctuation of ±6.1%, opening up a variety of strategic opportunities for traders depending on their volatility expectations.
Strategies Based on Volatility Expectations
1. Increased Volatility Anticipation:
Traders predicting a rise in volatility may opt for a Long Straddle strategy. This approach involves purchasing both an ATM call and an ATM put option, both with the same strike price and expiry date. This strategy stands to benefit if SBI’s stock experiences significant movement outside the ±6.1% range in either direction.
2. Lower Volatility Expectation:
If traders expect volatility to remain subdued, a Short Straddle may be a more appropriate strategy. This entails selling both an ATM call and an ATM put option with the same strike price and expiry, allowing the trader to profit if SBI’s stock remains within the ±6.1% range.
For those predicting a specific directional move—whether bullish or bearish—directional spreads may offer a more tailored approach than simply buying options.
Bullish Outlook: Bull Call Spread
For a bullish stance, traders can employ a Bull Call Spread. This involves purchasing an ATM call while simultaneously selling a higher strike call with the same expiry date, effectively reducing the initial cost but capping the potential profit.
Bearish Outlook: Bear Put Spread
Conversely, if a bearish outlook is anticipated, a Bear Put Spread may be more fitting. This strategy involves buying an ATM put while selling a lower strike put, striking a balance between risk and reward.
For deeper insights into Straddle strategies, be sure to explore our UpLearn educational content. If you’re looking for historical earnings price data, feel free to join our community—we’re eager to share our resources!
Disclaimer: SBI Q3 2025 Results
Derivatives trading involves significant risks and should only be undertaken by traders with a comprehensive understanding of these risks. Risk management tools like stop-losses are crucial. The information presented here is for educational purposes only, and we do not recommend specific stocks, securities, or strategies for trading. The examples in this article serve only as illustrations of how to perform analysis. Always make your own informed decisions before investing.
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