State Bank of India posts third-quarter loss

Corporate loans

SBI Q3 earnings: Here's what to keep track of

According to Rajnish Kumar, chairman of SBI, the net loss was due to hardening bond yields that caused severe treasury losses.

Bank of Baroda Ltd said on Friday its third-quarter net profit plunged almost 56 percent, as provisions for bad loans almost doubled.

Gross non-performing assets (NPAs) of the bank reached 11.31 per cent of the gross advances by the end of December 2017 from 11.40 per cent in the same period a year ago. Accordingly, the bank made a provision of ₹220 crore during the third quarter and plans to provide the remaining ₹220 crore in the fourth quarter of this fiscal.

For the quarter ended in December, SBI had earned a total income of Rs 62,887.06 crore, up from Rs 53,587.51 crore in the same quarter in the last fiscal. The gross non-performing assets ratio jumped from 7.23 per cent to cross the double digits mark at 10.35 per cent during the quarter under review. The year-ago numbers have been restated after the merger.

Kumar said the bank has signed an agreement with the government to raise Rs 20,000 crore in core equity from non-promoter investors, beyond the Rs 8,800 crore it expects through a preference issue to the government soon.

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

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. The bank had earlier guided for 5-6% loan growth in the current fiscal.

The stock was trading lower 1.38 per cent at Rs 297.30 ahead of its Q3 earnings in a market where benchmark BSE Sensex was down 1.46 per cent at 33,909 at around 11.25 am.

Interest income during the quarter was Rs 3449.55 crore, compared with Rs 4192.47 crore in the corresponding previous period.

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