State Bank of India (SBI) on Friday reported a loss for a third consecutive quarter as non-performing assets (NPAs) continued to mount and provisions soared. The bank would have reported higher loss if there was no tax write back. Net loss for the June quarter (Q1) stood at ₹ 4,875.85 crore against a profit of ₹ 2,005.53 crore a year ago. According to 17 Bloomberg analysts, the bank was expected to post a profit of ₹ 237.80 crore.
SBI received a tax write back of ₹ 2,379.28 crore in Q1 FY19 against tax paid of ₹ 939.05 crore in Q1 FY18.
Provisions and contingencies surged 115.33% to ₹ 19,228.26 crore in Q1 from ₹ 8,929.48 crore a year ago. On a quarter-on-quarter basis, they declined 31.56% from ₹ 28,096.07 crore.
Gross NPAs rose 13.17% to ₹ 2.13 trillion at the end of the June quarter from ₹ 1.88 trillion a year ago. As a percentage of total loans, SBI’s gross NPAs stood at 10.69% as compared to 10.91% in the previous quarter and 9.97% in the year-ago quarter. Net NPAs were at 5.29% in the June quarter compared to 5.73% in the March quarter and 5.97% in the June quarter last year.
Net interest income (NII), or the core income a bank earns by giving loans, was up 23.8% to ₹ 21, 798.36 crore versus ₹ 17,606.07 crore last year. Other income was at ₹ 6,679.49 crore, down 16.57% from ₹ 8,005.66 crore a year ago.
STATE BANK should be merged with regional rural bank
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