SBI posts 3rd straight quarterly loss of ₹4,676 crore

The loss is much larger than analysts' estimates of a loss of ₹1.71 billion.

New Delhi: The country’s largest lender SBI on Friday reported a hefty loss of Rs 4,876 crore for the June quarter due to higher bad loans. Bank had earned a net profit of Rs 2,006 crore in the April-June period of the previous fiscal.

However, total income during the three-month period rose to Rs 65,492.67 crore as compared to Rs 62,911.08 crore in the June quarter of 2017-18. The bank’s gross non-performing assets (NPAs) rose to 10.69% of total advances at the end of June, against 9.97% a year ago. However, net NPA marginally declined to 5.29% .

Accordingly, gross NPAs increased to Rs 2,12,840 crore as on June 2018 from Rs 1,88,068 crore at the end of the same month last year. However, net NPAs of the bank declined to Rs 99,236 crore at the end of the first quarter, against Rs 1,07,560 crore last year.

Total provisions more than doubled to Rs 19,228 crore for the first quarter of this fiscal, from Rs 8,929.48 crore. On a consolidated basis, the bank posted a net loss of Rs 4,230 crore as against a profit of Rs 3,032 crore earlier.

Banks plagued by record bad loans

  • Rs 48.76 billion: SBI’s third consecutive quarterly net loss came in at Rs 48.76 billion for the three months to June 30, compared with a profit of Rs 20.06 billion.
  • Rs 130 billion : Its bad-loan provisions for the quarter rose 7.5% to Rs 130.38 billion, but fell 45% from the March quarter.
  • Rs 10.36 tn: Indian banks have been plagued by record levels of non-performing loans over recent years, and held Rs 10.36 trillion bad loans.
  • Rs 58.93 billion: SBI, which accounts for more than a fifth of India’s banking assets, recognized net mark to losses on investments of Rs 58.93 billion.
  • 2.8%: Last month, more than 20 banks signed a pact aimed at faster resolution of bad loans. SBI shares reversed early losses to rally as much as 2.8%.

UCO Bank posts net loss of Rs 634 crore in Q1

  • State-owned UCO Bank on Friday reported a net loss of Rs 633.88 crore for the first quarter ended June 2018.
  • This first quarter loss, however, has narrowed both on annual and sequential basis. During April-June period of 2017-18, its net loss stood at Rs 663.02 crore.
  • Bank’s asset quality worsened with the gross non-performing assets (NPAs) hitting 25.71% of gross advances as on June 30, 2018 as against 19.87% by end-June 2017.
  • However, total income in April-June 2018 increased to Rs 4,360.88 crore from Rs 4,237.04 crore in the same period a year ago, the bank said in a regulatory filing.

(With inputs from PTI)

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