SBI suffers loss for 3 quarters in a row
Mumbai: The State Bank of India (SBI) on Friday reported a surprise loss of Rs 4,876 crore for the first quarter ended June 30 - its third straight quarter of being in the red.
The lender blamed the loss on lower trading income and mark-to-market (MTM) losses on its bond portfolio apart from higher provision on account of wage revision and raising of the gratuity ceiling.
The bank had posted a net profit of Rs 2,006 crore in the same period last year. Analysts were expecting the lender to post profits in the region of Rs 200 crore.
However, the PSU lender performed well on the asset quality front with gross non-performing assets (NPAs) in absolute terms declining to Rs 2,12,840 crore as on June 30, 2018, from Rs 2,23,427 crore as on March 31. On a sequential basis, the percentage of gross NPAs fell to 10.69 per cent from 10.91 per cent, though it was higher than 9.97 per cent in the corresponding period of the previous fiscal.
Fresh slippages were also lower at Rs 9,984 crore from Rs 33,670 crore in the January-March quarter and Rs 26,249 crore in the year-ago period.
During the quarter, the bank's net interest income (interest earned minus interest expended) rose almost 24 per cent to Rs 21,798 crore from Rs 17,606 crore in the first quarter of the previous year. While interest income on loans grew 7.54 per cent to Rs 38,865 crore from Rs 36,142 crore, the interest expenses on deposits fell 2.09 per cent.
However, what dragged its bottomline was the fall in the non-interest income, which was down 16.57 per cent to Rs 6,679 crore in the April-June period of this year from Rs.8,006 crore in the first quarter of 2017-18 because of lower trading income.
Staff expenses increased 25.68 per cent over last year largely on account of provisions for wage revisions and enhancement of the gratuity ceiling.
The SBI disclosed that domestic advances grew 7.21 per cent to Rs 17,23,443 crore in the first quarter of the current fiscal from Rs 16,07,583 crore last year. Retail advances at the bank rose over 14 per cent year-on-year to Rs 5,59,134 crore with home loans growing 13 per cent.
The SBI share fell 3.79 per cent to Rs 304.45 on the BSE, wiping out Rs 10,708.93 crore in market valuation. Intra-day, it had fallen almost five per cent. On the NSE, the scrip slumped 4.63 per cent to Rs 302.70.