India's largest lender State Bank of India on Friday reported a net loss Rs 2,416.37 crore for the December quarter of current fiscal as against a net profit of Rs 2,610 crore in the corresponding period the previous year.
The company reported its net interest income, which is the difference between interest earned and interest expended, rose by 26.68 percent to Rs 18,687.52 crore, compared to Rs 14,751.54 crore past year.
SBI December quarter net profit is seen at Rs2,059.4 crore, according to a Bloomberg poll of 16 analysts. Accordingly, the bank made a provision of ₹220 crore during the third quarter and plans to provide the remaining ₹220 crore in the fourth quarter of this fiscal.
Among other parameters, the net interest margin improved to 2.72 per cent during the quarter from 2.31 per cent in the year-ago quarter. SBI reported a surprise loss hurt by lower trading income on "hardening" bond yields and higher bad loan provisions. Similarly, its net non-performing assets nearly doubled to Rs 102,370.12 crore, up from Rs 61,430.45 crore, SBI said in an exchange filing.
In absolute value, it was at Rs 19,852.15 crore, as against Rs 19,006.33 crore. Over Rs 6,000 crore in provisions was due to the divergences. He added that there may also be cases where there can be a write-back of money already set aside.
Kumar said the bank has signed an agreement with the government to raise Rs 20,000 crore in core equity from non-promoter investors, beyond the Rs 8,800 crore it expects through a preference issue to the government soon. Fee income rose from Rs 4,710 crore to Rs 4,979 crore - a growth of 5.71 per cent. Gross bad loans as a percentage of total loans stood at 10.35 per cent at end-December, compared with 9.83 per cent in the previous quarter. "We are at the end of the NPA cycle and the scenario for next year looks very good".
SBI shares ended on a weak note by falling 1.68 per cent at Rs 296.40 on BSE Sensex.