Published: Thu, February 15, 2018
Business | By Max Garcia

Crore Net Loss In Q3

Crore Net Loss In Q3

The State Bank of India stock fell in opening trade after the lender reported a massive Rs 2,416.37 crore net loss for the December quarter of current fiscal as its bad loans and provisions spiked.

"Bank has kept the consistency of giving good results particularly quarter on quarter basis".

BOI stated that the bank made provision of Rs 549.29 crore as of December 2017, for the first list of wilful defaulters identified by RBI on June 23, 2017 for Insolvency & Bankruptcy Code (IBC) Act.

The bank had reported profit at Rs 373.5 crore in corresponding quarter of last fiscal. The subsequent difference in provisions was Rs 4,350 crore.

Responding to a query, Kharat said, the bank was hoping that the issue of mark to market depreciation on investments would be a one quarter issue only and the bank has to adopt a wait and watch approach on it.

Asset quality improved during the quarter as the gross non-performing assets were lower at 6.27 percent from 6.67 percent in previous quarter and net NPAs were also declined at 3.30 percent from 3.41 percent QoQ.

"This is one of the best numbers reported among public sector banks", he said adding stressed advances was reduced to 8.88 per cent as on December 31, 2017 from 12.41 per cent registered same period of past year. With lower interest reversals, rate cycle turning and capital raising/government infusion, we expect core PPOP trend to improve meaningfully from FY19F and we expect normalised ROEs of 12 per cent by FY20F.

"It is way above the regulatory requirement of 10.25 per cent", he said. ICICI Bank's net profit stood at Rs 1,650 crore for the quarter, even after a 32% drop, and Axis Bank reported a net of Rs 726 crore.

Shares of United Bank of India closed 0.66 per cent up at Rs 15.25 on BSE. PSBs have written off loans worth Rs 53,625 crore in the six months to September.

Like this: