Shock and woe as SBI reports first quarterly loss in 17 years

10 February, 2018, 06:48 | Author: Barbara Daniel
  • Bank of Baroda Q3 profit sinks 56% as provisions for bad loans nearly double

State Bank of India, the nation's biggest lender by assets, reported a surprise loss of 24.16 billion rupees ($375.10 million) for the three months ended December. Its net non-performing assets rose from 5.43% to 5.61%. "The slippage ratio for nine months was lower than a year ago and we aim to contain fresh slippages within two per cent in FY19", he said adding that the bank has provided almost 60 per cent towards cases under resolution via NCLT.

State Bank of India (SBI) unloaded two bits of bad news after market hours on Friday: An unexpected first quarterly net loss in at least 17 years and significant divergences in provisioning compared to the Reserve Bank of India's assessment.

Besides, SBI also reported a significant divergence - a staggering Rs 23,239 crore - compared to RBI's assessment as of March 2017.

A bulk Rs 10,000 crore of divergences were from the power sector and Kumar said further pain is in the offing, with high exposure to the sector.

The bank's bad loans or non-performing assets (NPAs) in Q3 stood at Rs 1.99 lakh crore from Rs 1.86 lakh crore in the previous quarter.

The bank, which has a Rs 78,000-crore exposure to the 40 accounts being resolved through the insolvency process, does not see much impact of such accounts on its bottomline as the provisions for these are already at 60 per cent levels. Contribution of treasury operations to the bank's income also came down during the quarter.

During the quarter, the central government has infused Rs 1,375 crore by way of preferential allotment of equity shares.

It said the growth in advances was fuelled on account of retail loan growth of 33.37 per cent and within retail loan, home loan grew by 44.33 per cent.

The overall capital adequacy ratio was at 12.68 per cent with the core tier-I at 10.30 per cent. "We are at the end of the NPA cycle and the scenario for next year looks very good".

Recommended:



Popular

Justin Timberlake Surprises Super Bowl 'Selfie Kid' on 'Ellen'
The singer then explained how the memorable moment came about, saying that McKenna stole the show. "Oh my gosh!" " Ryan , I look forward to meeting you", Justin ended their phone conversation.

Flu season: More 10 children killed, bringing them to 63 children
The agency reported another 10 deaths among United States children this season, bringing the total to 63 so far. The governor says the move is aimed at accommodating New Yorkers still needing a flu shot.

Lawsuit Alleges Georgia Tech Coach Josh Pastner Sexually Assaulted, Threatened Woman
The alleged incident happened in February of 2016 while Pastner was still the men's basketball head coach at Memphis. The lawsuit was filed by Ron Bell, a former close friend of Pastner.

Snap paid publishers more than $100 million previous year
It's that time of the year again when companies share their fourth-quarter results and Snap reports solid growth in North America. It added 8.9 million daily active users in the final three months of the year, more than any other quarter of the year.

Turkey's ambassador to United Kingdom briefs media on Afrin op
According to state-run Russia Today, Erdogan briefed his Russian counterpart on the latest developments in Turkey's ongoing incursion into the Kurdish-held canton of Afrin in northwestern Syria.

Amazon Starts Whole Foods Grocery Delivery Service Through Prime Now
That means you can't mix together items offered by Amazon's shop and Whole Foods' shop and expect them to be delivered together. It's unclear if Greeley's title will change or whether his appointment will affect Whole Foods CEO John Mackey's role.

Taiwan quake death toll rises to 10
Taiwan's Central News Agency says four people have been killed and 225 others injured, while more than 140 remain unaccounted for. Taiwan is located within the so-called "Pacific Ring of Fire", an area known for its intense seismic activity.

NY's Porzingis out for season
Porzingis is eligible for a five-year, $150-million contract extension this summer, which only adds more drama to his situation. After the game, an emergency MRI at Madison Square Garden revealed that Porzingis had torn his ACL.

MFIA Clinic Seeks FISA Court Records in Carter Page Case
The Steele dossier does not identify its sources and Page has denied any wrongdoing. Page told Fox News Monday night that the letter was "totally taken out of context".

Will Snap Have More Bad News When It Reports Earnings?
In related news, Director Mitchell Lasky sold 25,000 shares of the company's stock in a transaction dated Tuesday, November 21st. Those design changes have put a bigger emphasis on user-to-user sharing, as opposed to content created by publishers and brands.