India’s biggest lender the SBI Group on Friday reported a massive loss of Rs 2416.37 crore on standalone on and Rs 1,886.57 crore on consolidated basis for the December quarter of current fiscal as its bad loans surged to a high of 5.61% of the advances. The bad loans in the same quarter last year was 4.24%, while the standalone net profit in the same period was Rs 2,610 crore.
SBI Chief Rajnish Kumar said that one of the major factors for the loss in the third quarter of the fiscal year 2017-18 was “hardening of bond yields”, adding that the growth in retail loans continues to be robust.
Here are the highlights from SBI’s third-quarter earnings:
- SBI Group reported a massive Rs 1,886.57 crore net loss on a consolidated basis in Q3. In the same quarter last fiscal, it had, on the contrary, reported a net profit of Rs 2,152.14 crore.
- SBI Group’s net bad loans ratio spiked to 5.61% of advances, from 4.24% during the third quarter of 2016-17. The net non-performing assets almost doubled to Rs 102,370.12 crore, up from Rs 61,430.45 crore in the same quarter last year.
- The gross dud assets ratio jumped from 7.23% to cross the double digits mark at 10.35% during the third quarter.
- The bank’s non-interest income declined by 29.75%, from Rs 11,507 crore to Rs 8,084 crore, as net interest income slumped due to mark-to-market losses from its treasury operations.
- The bank’s non-fee income fell 18.38% from Rs 14,401 crore to Rs 11,755 crore, while its dee income rose from Rs 4,710 crore to Rs 4,979 crore.
- SBI said that 79% of its total transactions is through alternate channels. Share of Digital Transactions is up by over 800 bps Y-o-Y
- It said that it has retained a leadership position in Debit Card spends with 30.60% of the market-share along with leadership position in Merchant Acquiring Business with over 6.34 lakh customer touch points (POS).