Friday, 10 August 2018

SBI posts third straight quarterly loss at Rs 48.76 bn on higher provisions

The country's largest lender State Bank of India, posted a loss of Rs 48.75 billion in the first quarter ended June 2018, on sharp rise in provisions and contingencies.
This is the third consecutive quarter in which the lender has booked a loss. It had posted a loss of Rs 77.18 billion in the fourth quarter ended March 2018.

This is the first comparable quarter for the merged entity after the bank integrated associate lenders and Bharatiya Mahila Bank with itself in April 2017.
It had posted a net profit of Rs 20.05 billion in April-June 2017 (Q1FY18), the first quarter after the merger.
Its net interest income (NII) was up 23.81 per cent at Rs 217.99 billion in Q1FY19 from Rs 176.06 billion in April-June 2017 (Q1FY18).
Its other income consisting of treasury income, commissions etc declined to Rs 66.79 billion in the April-June 2018 period from Rs 80.05 billion a year ago.
Gross non-performing assets (NPAs) improved to 10.69 per cent as on June 30, 2018, from 10.91 in the last quarter (March 2018), indicating stabilisation in NPA levels. They stood at 9.97 per cent in June 2017. Net NPA ratio declined to 5.29 per cent from 5.49 per cent in the last quarter. They were at 5.97 per cent at end of June 2017.
The total provisions and contingencies more than doubled to Rs 192.28 billion in Q1FY19 from Rs 89.29 billion a year ago. Of this, provisions for NPAs rose marginally on year-on-year (Y-o-Y) basis at Rs 130.37 billion in Q1Fy19 from Rs 121.25 billion in Q1FY18.
On a sequential basis, NPAs provision bill feel sharply from Rs 240.8 billion in the quarter ended March 2018.
The bank's capital adequacy ratio at 12.83 per cent and CET-1 at 9.8 per cent continue to be above regulatory norms. Its stock was trading higher by 2.6 per cent at Rs 324.8 per share on BSE late afternoon.

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