State Bank of India posts Q3 loss

State Bank of India posts Q3 loss

State Bank of India posts Q3 loss

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.

NPA provisioning coverage ratio stood at 68.03 per cent as on December 31, 2017, the bank said in a regulatory filing.

The results are not comparable from the year-ago period because SBI merged its five associate banks with effect from 1 April.

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

Provisions other than tax and contingencies during the quarter was Rs 1,385.38 crore, compared with Rs 1,326.05 crore in the comparative quarter previous year.

Total provisioning and contingencies for the quarter were raised to Rs 2,089.99 crore, from Rs 784.74 crore. The country's 21 state-run banks accounted for the bulk of the Rs 9.46 lakh crore worth of stressed loans as of end-September. He added that there may also be cases where there can be a write-back of money already set aside.

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The Rs 20,000 crore infusion will reduce the government stake by up to 4 percentage points, he said.

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 bank feels economic revival is underway which has led it to up its loan growth target to 10.3% in FY19 from the over 2% achieved in the first nine months of the current fiscal. 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.

The overall capital adequacy ratio was at 12.68 per cent with the core tier-I at 10.30 per cent.

Reiterating that the bank is doing well on various other measures, he tried to paint an optimistic picture for the future saying, "there is banking beyond NPAs as well".

The bank's stock closed 0.31 per cent down at Rs 65.20 on BSE.

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