21
Sunday
October 2018
2:18 PM IST
News Headlines
Virat Kohli And Team India Gear Up For 1st ODI vs Windies With A Game Of Keepy-Uppy        Shuttler Srikanth out; Saina in final of Denmark Open        Amritsar tragedy: Women, children among 61 killed as rushing trains crush Dussehra revellers        Rahul Gandhi calls on Sri Lankan PM        Top Afghan Police Chief Killed In Shooting, US General Unhurt        Putin says IS seized 700 hostages in Syria; executing some        Ten-wicket Abbas destroys Australia for Pakistan's series win        Vijayan urges UAE Keralites to back salary challenge        Japan introduces Artificial Intelligence technology to ease business        Reliance Industries posts net profit of Rs 9516cr in Q2        ISL: Super-sub Maimouni Hands ATK First Win        Chris Morris returns for Australia tour        PCB chief urges Australia to return to Pakistan        Sri Lankan President assured of "fullest cooperation" by PM Modi        VP Naidu arrives in Brussels for 12th ASEM Summit        In Turkey, Pompeo discusses Iranian oil consumption, Khashoggi's disappearance        PNB Scam: ED seizes more assets of Modi, Choksi        Andhra CM visits cyclone-hit areas in Srikakulam        #MeToo fallout: MJ Akbar resigns as minister of state for external affairs        SC writ fails in Sabarimala, not a single young woman allowed by protesters        
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Business News
SBI Q4 loss at Rs 7,718 crore as NPA provisions jump
 
(Mumbai, May 22, 2018):State Bank of IndiaNSE 3.87 %, the country’s biggest lender, reported its second straight quarterly loss in the March quarter as provisions for bad loans surged on rising defaults, and an erosion in the profitability from its securities trading business.

But the bellwether of the Indian economy projected a rosy picture ahead amid signs of resolution of bad loans under the newly created Insolvency and Bankruptcy Code that could lead to some write back of provisions too.

Its loss was much higher than expected at Rs 7,718 crore. A Bloomberg poll of 14 analysts’ expectations forecast a loss of Rs 1,728 crore. Fresh slippages at the bank rose to Rs 33,670 crore from Rs 25,836 crore in December quarter.

"The industry has gone through a challenging phase and State Bank of India is no exception. But, I can confidently say that while last year was the year of disappointment, this will be the year of hope and next year will be the year of happiness,” Chairman Rajnish Kumar told reporters at a conference in Mumbai, reversing decades of tradition at the British era bank which till last year held its annual earnings meeting at the Imperial capital of Kolkata.

For the full year the bank has to incur loss provision of Rs 70680 crore and it also provided in full for the mark-to-market losses of over Rs 6000 crore. Due to amendment in the Gratuity Act in the last week of March the bank had to take a provision hit of Rs 900 crore.

Its shares rose nearly 4 percent amid expectations that the worst was over.

“While the quarter gone by was a tough one, I expect FY19 to be much better,” said Siddharth Purohit, research analyst with SMC Institutional Equities. “The management remains confident about lower credit cost for FY19 and FY20, so it seems finally there is better clarity about asset quality for FY19. The combined outstanding watch list of Rs 25,000 cr which also includes the SMA2 list is a huge comfort.”

Provisions and contingencies increased to Rs 28096 crore for the quarter from Rs 11740 crore in the same period last year. Gross bad loans as a percentage of total loans stood at 10.91 percent at the end of March quarter, compared with 6.90 percent during the same period a year ago, and 10.35 percent in the previous quarter.

“Because the trend is yields is upwards we took a conscious decision not to amortise losses on MTM across

“When we speak today we speak from the strength of SBI, we have put the past behind us,” Kumar said. “Last three years have been very challenging but in any organisation’s history this kind of situations do come but what matters is that we are a much stronger organisation than what we were two years ago. We are poised for growth in a risk mitigated manner.”

Its net interest income, the difference between its cost of funds and what it earned from lending, fell 5.18 percent to 19,974 crores from Rs 21,065 crores a year earlier as the demand for loans from a debt crippled corporate sector was slow.

But its retail engine continued to hum with growth of 13.55 percent as it accelerated funding of homes, cars and raise credit card issuances. The bank is targeting a credit growth of 10 percent and a deposit growth of 9 percent for FY19. The bank will also require Rs 20000 crore as growth capital this fiscal which will be funded by a combination of tier-1 bonds and sale 0f non-core assets.

“Notwithstanding the high slippages during the quarter the outlook appears to be improving,” said Lalitabh Shrivastawa, AVP Research at Sharekhan. “The watch-list of approximately 1.3 % of total advances (Rs 25802 crore), now contains all corporate SMA2 and stressed SMA1. Going forward, we believe that the bulk of pain in terms of NPL recognition is behind for SBI.”


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KERALA NEWS
Vijayan urges UAE Keralites to back salary challenge
 (Abu Dhabi, Oct 18, 2018): Kerala Chief Minister Pinarayi Vijayan has urged Keralite business  
Sabarimala row: Protests against SC verdict continue
Balabhaskar's wife Lakshmi shifted to ICU
Idukki dam's one shutter opened
INTERNATIONAL NEWS
Top Afghan Police Chief Killed In Shooting, US General Unhurt
 (Kandahar, oct 19, 2018):Gen. Abdul Razeq, one of Afghanistan's most powerful security offici
Putin says IS seized 700 hostages in Syria; executing some
Sri Lankan President assured of "fullest cooperation" by PM Modi
VP Naidu arrives in Brussels for 12th ASEM Summit
NATIONAL NEWS
Amritsar tragedy: Women, children among 61 killed as rushing trains crush Dussehra revellers
 (CHANDIGARH, oct 19, 2018):At least 61 people, including women and children, were mowed down
Rahul Gandhi calls on Sri Lankan PM
PNB Scam: ED seizes more assets of Modi, Choksi
Andhra CM visits cyclone-hit areas in Srikakulam
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