State Bank of India reports loss for third straight quarter in April-June
The bank reported a loss of Rs 4,876 crore in the quarter as its bad loans continued to surge.
The State Bank of India reported a loss of Rs 4,876 crore in April-June as the bank’s bad loans continued to surge and it made higher provisions for such loans. This is the third consecutive quarter that the country’s largest lender has reported a loss. The bank had reported a profit of Rs 2,005.53 crore in the same quarter a year ago.
The bank’s stock declined 3% during the afternoon trade after it reported its quarterly earnings. Analysts had expected the bank to post a profit of Rs 237.80 crore during the quarter, according to Bloomberg.
Gross non-performing assets of SBI rose 13.2% from Rs 1.88 lakh crore a year ago to Rs 2.13 lakh crore as on June 30. As a percentage of total loans, the figure on June 30 was 10.69% as compared with 10.91% a quarter ago, but higher than 9.97% a year ago.
Provisions and contingencies rose 115% to Rs 19,228.26 crore from Rs 8,929.48 crore a year ago. On a quarter-on-quarter basis, they declined 31.6% from Rs 28,096.07 crore, Mint reported.
Net interest income – the core income a bank earns by giving loans – surged 23.8% to Rs 21,798.36 crore compared to Rs 17,606.07 crore last year.
In January-March, the State Bank of India had reported a net loss of Rs 7,718.17 crore, its biggest quarterly loss ever.