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SBI Reports Unexpected Q1 Net Loss of Rs 4,875 Crore

Olga Robert

The State Bank of India (SBI) reported a standalone net loss of Rs 4,875.85 crore for April-June quarter, compared to analysts expectations of Rs 238 crore profit (Bloomberg). It is the country's largest lender's third consecutive quarterly loss.

In the March 2018 quarter, it had reported a Rs 7718.17 crore loss, while in the June 2017 quarter, it had reported a profit of Rs 2,005.53 crore.

SBI's provisions and contingencies increased by 115.33 percent to Rs 19,228.26 crore on a year-on-year basis from Rs 8,929.48 crore. On a quarter-on-quarter basis, it declined by 31.56 percent from Rs 28,096.07 crore in March 2018.

The lender's gross non-performing assets (NPAs) for the quarter under review as percentage total loans dropped to 10.69 percent from 10.91 percent in March and 9.97 percent in June 2017. The net NPAs fell to 5.29 percent from 5.73 percent in March quarter and 5.97 percent in the year-ago period.

Interest earned during the quarter grew by 7.1 percent to Rs 58,813.18 crore from Rs 54,905.40 crore last year. Shares of SBI were trading lower after the announcement of results.

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