SBI reports loss at Rs 4,876 crore in Q1, fresh slippages way below estimates; shares rise

By: | Updated: August 10, 2018 3:11 PM

State-run lender State Bank of India reported a net loss in the third straight quarter, even as the bank’s earnings were impacted by significant MTM losses due to hardening of bond yields. The loss widened to Rs 4,876 crore.

State-run lender State Bank of India reported a net loss in the third straight quarter, even as the bank’s earnings were impacted by significant MTM losses due to hardening of bond yields. The bank reported a net loss of Rs 4,876 crore during the quarter under review. Higher provisions on account of wage revision and enhancement in gratuity ceiling too weighed on the earnings. Notably, SBI has reported the lowest slippages in the last 3 quarters. The number came in at Rs 9,985 crore, as compared to the street estimates of Rs 15,000 crore, according to CNBC TV18. “Bank has not availed the benefit of RBI dispensation with regard to amortization of MTM loss.  Operating profit increased by 0.83% from Rs. 11,874 crore in Q1FY18 to Rs. 11,973 crore in Q1FY19,” SBI said in the release.

SBI shares rallied immediately following the declaration of results.  Notably, the shares had been trading weaker than expected during the day ahead of the results, However, the shares rallied by more than 2.3% to hit an intraday high of Rs 325.85 on NSE. We bring to you key figures in a nutshell.

SBI Q1 results: Key figures in a nutshell

  • The bank’s net loss came in at Rs 4,876 crore, as compared to Rs 2,005 crore reported in the same period previous fiscal. The results were mainly impacted by a MTM loss, which the bank recognized in the same quarter. SBI said that it did not avail the benefit of RBI dispensation with regard to amortization of MTM loss.
  • SBI reported a marginal increase in the operating profit of 0.83% from Rs 11,874 crore in the June ended quarter previous year to Rs 11,973 crore in the quarter under review. Interestingly, the net interest income rose by 23.81% from Rs. 17,606 crore in Q1FY18 to Rs. 21,798 Cr in the latest quarter.
  • State bank of India said that non-interest income decreased by 16.57% from Rs. 8,006 crore in Q1FY18 to Rs. 6,679 crore in Q1FY19 mainly on account of lower trading income. “Excluding treasury income, YoY growth in non-interest income was 27.39%,” SBI said.
  • Fee income increased from Rs 4,870 crore in the Apr-Jun quarter of previous year, to Rs 4,976 crore in Q1FY19, a YoY growth of 2.19%.
  • In the bank the deposits increased by 5.58% from Rs 26.02 lakh crore as on June 17 to Rs.27.47 lakh crore as on June 18. Notably, domestic CASA Deposits increased by Rs 82,740 crore.
  • For the bank, gross NPAs declined from Rs 2,23,427 crore as on March-18 to Rs 2,12,840 crore as on June-18, whereas Net NPA declined from Rs 1,10,855 crore to Rs. 99,236 crore during the same period.

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