India’s largest public sector bank State Bank of India on Tuesday reported a net loss of Rs 7,718.17 crore in the fourth quarter (January-March) of the fiscal year 2017-18. Once again, it is the higher bad loans or non-performing assets (NPA) that led to SBI’s losses.
It is also been reported that the loss incurred is much greater than expected as a Reuters survey of 16 analysts had expected the loss to come at Rs 1,285 crore.
The country’s largest lender SBI had reported a net profit of Rs 2,814.82 crore in the corresponding period of 2016-17. Sequentially, the loss widened from Rs 2,416.37 crore in the third quarter ended December 2017.
Total income during the January-March quarter was up at Rs 68,436.06 crore, from Rs 57,720.07 crore in the same period a year earlier, the bank said in a regulatory filing.
The blame for the loss can be pinned to mounting bad loans as gross bad loans as a percentage of total loans of the lender rose to 10.91 per cent from 10.35 per cent three months earlier and 6.90 per cent a year prior.
Gross NPAs, as a percentage of gross loans, jumped to 10.91 per cent from 6.90 per cent at March-end 2017. Net NPAs rose to 5.73 per cent of the net advances compared to 3.71 per cent last year.
Stock of SBI was trading 5.2 per cent up at Rs 257.85 on BSE in afternoon trade.