SBI posts Rs 2,416 crore loss in third quarter on bond yields, high bad loans

State Bank of India at the standalone level had Rs 1,99,141.43 crore of its assets as non- performing, up from Rs 1,08,172.32 crore in the comparable period in 2016.

By: ENS Economic Bureau | Mumbai | Updated: February 10, 2018 12:55:40 am
SBI saw its net bad loans ratio spiking to 5.61 per cent of advances, from 4.24 per cent during the third quarter of 2017-18.(Photo: Reuters)

India’s largest lender State Bank of India on Friday reported a net loss Rs 2,416.37 crore for the December quarter of current fiscal as against a net profit of Rs 2,610 crore in the corresponding period the previous year. The bank in a statement said its net loss is “due to lower trading income due to hardening of bond yields, higher corporate slippages leading to higher loan loss provisions and significant investment depreciation hit”.

For the quarter ended in December, SBI had earned a total income of Rs 62,887.06 crore, up from Rs 53,587.51 crore in the same quarter in the last fiscal. During the quarter under review, the provisions shot up to Rs 18,876.21 crore, from Rs 8,942.83 crore in the previous corresponding period.

The bank saw its net bad loans ratio spiking to 5.61 per cent of advances, from 4.24 per cent during the third quarter of 2017-18. The gross non-performing assets ratio jumped from 7.23 per cent to cross the double digits mark at 10.35 per cent during the quarter under review.

In absolute or gross terms, the bank at the standalone level had Rs 1,99,141.43 crore of its assets as non- performing, up from Rs 1,08,172.32 crore in the comparable period in 2016. Similarly, its net non-performing assets almost doubled to Rs 102,370.12 crore, up from Rs 61,430.45 crore, SBI said in an exchange filing. The bank saw its non-interest income decline by 29.75 per cent, from Rs 11,507 crore to Rs 8,084 crore, as net interest income plunged due to mark-to-market losses from its treasury operations.

Similarly, non-fee income fell 18.38 per cent from Rs 14,401 crore to Rs 11,755 crore. Fee income rose from Rs 4,710 crore to Rs 4,979 crore — a growth of 5.71 per cent.

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