Mumbai: The State Bank of India (SBI) reported a net loss of Rs 4,875.85 crore for the quarter ended June 2018 due to a steep increase in provision for bad loans. This is the third consecutive quarter of loss for the country’s largest lender.
Apart from higher provisions, the bank attributed the loss to lower trading income and significant mark to market (MTM) losses due to hardening of bond yields.
During the previous quarter (March 2018), the bank had reported a record loss of Rs 7,718 crore and a net profit of Rs 2,006 crore during the quarter ended June 2017.
The total provisions during the quarter increased by 115 per cent to Rs 19,228.26 crore from Rs 8,929.48 crore during the same period last year.
However, on a sequential basis, the total provision is down 31.5 per cent from Rs 28,096 crore.
Out of the total provision, the bank said the provision set against non-performing assets was Rs 13,037.90 crore.
The share price of SBI slumped 3.79 per cent to close at Rs 304.45 as the quarterly numbers were below what the market participants had anticipated.