SBI Q4 Results 2018: Bank reports biggest ever quarterly loss at Rs 7,718 crore, but shares rally 6%

By: | Updated: May 22, 2018 3:10 PM

SBI Q4 Results 2018: India's largest bank by assets and third-largest by market capitalisation State Bank of India (SBI) on Tuesday reported a standalone net loss of Rs 7,718.17 crore for the quarter ended 31 March 2018 as bad loan provisions doubled as compared to same quarter last year.

SBI Q4 Results 2018: Following the fourth-quarter earnings release, shares of SBI surged 6.04% to a day’s high of Rs 259.9 on BSE. (Image: Reuters)

SBI Q4 Results 2018: India’s largest bank by assets and third-largest by market capitalisation State Bank of India (SBI) on Tuesday reported a standalone net loss of Rs 7,718.17 crore for the quarter ended 31 March 2018 as bad loan provisions doubled as compared to same quarter last year. This was the biggest-ever quarterly loss reported by State Bank of India so far in the history. On a sequential basis, SBI’s standalone net loss rose over three-fold to Rs 7,718.17 crore as against a standalone net loss of Rs 2,416.37 crore in the October-December period of the financial year 2017-2018. State Bank of India has posted a standalone net profit of Rs 2,814.82 crore in the comparable quarter of the financial year 2016-2017.

SBI share price surge

State Bank of India in a separate press release said that the expected a haircut on entire NCLT list 1 is 52%. Further, SBI expects a bulk of the resolutions in NCLT list 1 to go through in H1FY19 with NCLT list 2 is likely to be resolved by end of FY19. “Resolution of NCLT accounts to lead to lower GNPAs, in addition to better margins,” SBI said in a statement. Following the development, shares of SBI surged 6.04% to a day’s high of Rs 259.9 on BSE.

Net income

SBI reported a rise of 18.57% in the consolidated net income to Rs 68,436.06 crore for the January-March quarter of the financial year 2017-2018 versus a standalone net income of Rs 57,720.07 crore in the corresponding quarter a year earlier. For the financial year ended 2017-2018, SBI’s standalone net income grew by 23.08% to Rs 2,59,663.83 crore versus Rs 2,10,979.17 crore while on the consolidated basis SBI net income saw a marginal growth of 0.95% to Rs 3,01,491.31 crore vs Rs 2,98,640.26 crore as for the FY17.

Provisioning

With two continuous quarters of losses, SBI posted a standalone net loss of Rs 6,547.45 crore in the financial year 2017-2018 as compared to a standalone net profit of Rs 10,484.1 in the corresponding quarter last year. In the reporting quarter, SBI standalone provisioning rose by 139% to Rs 28,096.07 crore as against a provisioining of Rs 11,740.09 crore made in the same quarter a year before.

Bad loans

On the assets front, SBI’s gross NPAs (non-performing assets) surged to 10.91% of the total gross assets at the end of 31 March 2018 as against 10.35% as at 31 December 2017 and 6.9% as at the end of 31 March 2017 while, on the other hand, net NPAs escalated to 5.73% at the end of 31 March 2018 versus 5.61% as at 31 December 2017 and 3.71% as at 31 March 2017. In absolute terms, SBI’s gross NPAs crossed Rs 2 lakh crore mark for the first time. As at the end of 31 March 2018, SBI’s gross NPAs were Rs 2,23,427.46 crore as compared to Rs 1,99,141.34 crore as at 31 December 2017 and Rs 1,12,342.99 crore as at the end of 31 March 2017.

Balance sheet and divergence

On the consolidated basis, SBI’s balance sheet size grew 4.97% to Rs 36,16,433 crore at the end of 31 March 2018 from Rs 34,45,121.56 crore as at 31 March 2017. With regard to the Reserve Bank of India’s risk assessment report, a divergence of Rs 23,239.13 crore and Rs 17,518.47 was seen in the gross and net NPAs, respectively. Notably, as at the end of FY17, SBI reported gross NPAs of Rs 1,12,342.99 crore while upon RBI’s assessment, gross NPAs came at Rs 1,35,582.12 crore. Similarly, SBI posted the net NPAs of Rs 58,277.38 crore while RBI classified net NPAs worth Rs 75,795.85 crore.

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