SBI, the country's largest state-run bank today reported its Q4FY18 results with a loss of Rs. 7,720 crore which is higher than analysts reading of Rs. 4,170 crore. This is the second consecutive quarterly loss for the leading lender.
For the quarter ended December, bank reported a net loss figure of Rs. 2416.37 crore while during the year ago period it posted a profit of Rs. 2,814.82 crore.
Provisions for bad loans has almost doubled to Rs. 22,096 crore from Rs 11,740 crore reported for the corresponding quarter last year. While for the previous quarter ended December provisions stood at Rs 18,876 crore.
There has been only a marginal change in gross bad loan ratio which has increased from 10.35% in the previous quarter to 10.9% in the quarter ended March. However, on the net basis, bad loan ratio weakened and came in higher at 5.73% in comparison to 5.61% in the earlier quarter.
For the quarter ended March 2018, most state-run banks have reported net losses except a very few after RBI in its February circular had taken away its current stressed asset schemes and asked lenders to re-classify the accounts.
After the announcement of results, stock rallied as much as 3.86% to Rs. 253. At 2:45 pm, the SBI stock was quoting higher by 3.63% at Rs. 254 on the BSE.