India's largest lender State Bank of India on Tuesday reported a whopping Rs 7,718 crore loss for March quarter as bad provisions doubled to Rs 22,096 crore from Rs 11,740 crore in the same quarter last year.
NPA provisions stood at Rs 18,876 crore for December quarter.The loss was way above Street estimates.
Analysts in an ETNow poll had projected the PSU lender to report Rs 1,795 crore loss.The PSU bank had reported Rs 2,416.37 crore loss in the December quarter and a profit of Rs 2,814.82 crore in the corresponding quarter last year.Gross non-performing assets (NPA) for the quarter rose to 10.91 per cent of total advances, from 10.35 per cent in October-December.Slippages for the quarter stood at Rs 33,000 crore.
Slippage ratio read 6.90 per cent for the quarter under review against 5.29 per cent in the three months to December.
Net interest income (NII) for the quarter in question rose 10.5 per cent to Rs 19,974 crore compared with Rs 18,070.7 crore last year.The stock jumped above the 50-DMA after the Q4 earnings.
Shares surged 3 per cent to trade at Rs 250 within minutes of the earnings announcement.Segment-wise, net loss from corporate or wholesale banking operations spiked by 2.79 times to Rs 13,525.40 crore in Q4 FY18 over net loss of Rs 4,845.41 crore in the same quarter of FY17.
Net profit from retail banking operations slipped 42.64 per cent YoY to Rs 3,586.57 crore during the quarter under review.Total advances of the bank for the quarter stood at Rs 20,48,387 crore, up 4.91 per cent from Rs 19,52,507 crore in the year-ago period.
Domestic advances saw an annual growth of 4.81 per cent to Rs 17,46,389 crore.On asset quality, the bank said, "All stressed accounts from 9M FY18 Standard Stressed classification that continue to be under stress are included in the watchlist and some new stressed accounts have been added."