The country’s largest bank State Bank of India (SBI) on Friday reported a net loss of Rs 4,875.85 crore for the quarter ended June as its provisions for bad loans rose by more than 70 percent year on year.
The lender’s bottom line was also weighed down by lesser other income, which fell to Rs 6,679.49 crore, primarily because it chose to recognise and report all its treasury losses in the reporting quarter itself.
The state-owned bank had reported a net loss of Rs 7,718 crore for the March quarter. In June quarter last year, SBI had reported a net profit of Rs 2,005.5 crore.
According to the average of estimates of analysts polled by Reuters, the bank was likely to report a loss of Rs 30.6 crore for the quarter under review. Motilal Oswal had in fact projected the bank to post a net profit of Rs 1,683 crore.
The bank’s provisions for bad loans rose 7.5 percent year on year to Rs 13,038 crore, but fell 46 percent sequentially.
NII and other income
The lender’s net interest income for the reporting quarter grew 23 percent year on year to Rs 21,729 crore. NII is the difference between interest paid on deposits and interest earned on loans.
Other income or non-interest income fell 16.5 percent on year to Rs 6,679 crore.
NPAs or Bad loans
As a percentage of total loans, gross non-performing assets (NPAs) fell to 10.69 percent from 10.91 percent as on March 31. At the end of the June quarter last year, SBI’s GNPA ratio stood at 9.97 percent.
Net NPA, as a percentage of total loans, came in lower at 5.29 percent, compared to 5.73 percent at the end of March and 5.97 percent at the end of June last year.
Gross slippages for the quarter fell to Rs 14,349 crore, less than half the slippages SBI reported for the March quarter.