Ankit Sharma Sharma
Green tea Addict | A Tree Hugger | Born for Change
The State Bank of India has recorded an independent net loss of Rs. 4876 crore, in the first quarter (April to June) for the financial year of 2018-2019, which is also its third consecutive quarter with such a loss.
Reportedly, prior to this, SBI had announced a loss of Rs 2,416 crore and Rs. 7,718.17 crore in the third and fourth quarter respectively, in the last fiscal year. It was only the first quarter of last year that SBI had declared an independent profit of Rs 2,005.53 crore.
On the other hand, SBI’s total income saw growth as well. As in this quarter, it came to Rs 65,492.67 crore as compared to last year’s Rs. 62,911.08 crore in the same quarter, reported the Times Of India.
The daily also reported that the Public Sector Unit (PSU) bank’s percentage of gross non-performing assets (NPAs) reduced to 10.69% in this quarter from 10.91% in the last quarter. The net NPAs of the bank also shrank to 5.29% in this quarter as compared to 5.73 in the last quarter.
According to the inputs from Live mint, SBI chairperson Rajnish Kumar, said, “In addition to provisions related to non-performing assets (NPAs), the bank kept aside ₹7,098 crore as mark-to-market provisioning towards rising bond yields.”
As per the resolution plan approved by National Company Law Tribunal (NCLT), Kumar also said that the bank has made a higher provision of 71% against the two lists of stressed accounts. Kumar stated, “In September, we expect one large account where we are awaiting the NCLT order. Once that comes and resolution happens, then we will be in profit. We will also increase provisioning next quarter against the power assets. From December, there will be no looking back and we will turn profitable.”
Reportedly, Following Reserve Bank of India’s norm to block issuing letters of undertaking, after Nirav Modi scam, SBI’s buyer’s credit book dropped to ₹13,132 crore.
Justifying the loss, SBI has said in a statement, “The net loss is largely attributable to lower trading income and significant mark-to-market losses due to hardening of bond yields,” the reports from Bloombergquint quoted.
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