India’s largest lender by asset size SBI (State Bank of India) on Tuesday reported its highest-ever quarterly loss of Rs 7,718.17 crore for the January-March period of the financial year finished 31 March 2018 as compared to a standalone net profit of Rs 2,814.82 crore in the same period of the previous fiscal. The sharp surge in the net loss is largely due to higher provisioning following the fresh slippages of as high as Rs 33,670 crore in gross NPAs (non-performing assets). SBI’s gross NPAs grew to 10.91% or Rs 2,23,427 crore (in absolute terms) at the end of 31 March 2018 from 10.35% or Rs 1,99,141 crore as at 31 December 2017.
Despite the biggest-ever quarterly loss, SBI shares surged 6.04% to a day’s top of Rs 259.9 before closing up 3.69% at Rs 254.15 on BSE on Tuesday. In a separate filing, SBI has said that the expected a haircut on entire NCLT list 1 is 52%. Further, State Bank of India has provided an expected timeline for NCLT lists. According to SBI, the bulk of resolutions in the NCLT (National Company Law Tribunal) List 1 to go through in the H1FY19 and NCLT list 2 is likely to be resolved by the end of FY19. “Resolution of NCLT accounts to lead to lower GNPAs, in addition to better margins,” SBI said in a statement.
Interestingly, SBI’s Q4 net provisions are more than six times than the Q4 net profit of HDFC Bank. Earlier in April last month, HDFC Bank posted a standalone net profit of Rs 4799.28 crore for the quarter ended 31 March 2018.
Q4 FY18 performance of SBI and HDFC Bank at glance (Standalone Basis)
|Net profit/loss (Rs crore)||-7,718.17||4,799.28|
|Total income (Rs crore)||68,436.06||25,549.66|
|Gross NPAs (%)||10.91||1.30|
|Gross NPAs (Rs crore)||223,427.46||860,697.00|
|Balance sheet size (Rs crore)||3,616,433.00||1,063,934.31|
|Reserves and surplus (Rs crore)||218,236.10||105,776.01|
|Earnings per share (Rs)||-8.92||18.50|
|Share price (Rs)||254.15||1,991.15|
|Market capitalisation (Rs crore)||226,818.39||517,096.81|
|Total provisions (Rs crore)||28,096.07||1,541.10|