SBI posts Q1 loss of Rs 4,876 cr, Uco `633 crore in red
New Delhi: The country's largest lender SBI on Friday reported a hefty loss of Rs 4,876 crore for the June quarter due to higher bad loans.
The bank had earned a net profit of Rs 2,006 crore in the April-June period of the previous fiscal, SBI said in a regulatory filing.
However, total income during the three-month period rose to Rs 65,492.67 crore as compared to Rs 62,911.08 crore in the June quarter of 2017-18.
The bank's gross non-performing assets (NPAs) rose to 10.69 per cent of total advances at the end of June, against 9.97 per cent a year ago.
However, net NPA marginally declined to 5.29 per cent from 5.97 per cent earlier.
Accordingly, gross NPAs increased to Rs 2,12,840 crore as on June 2018 from Rs 1,88,068 crore at the end of the same month last year.
However, net NPAs of the bank declined to Rs 99,236 crore at the end of the first quarter, against Rs 1,07,560 crore in the year-ago period.
Total provisions more than doubled to Rs 19,228 crore for the first quarter of this fiscal, from Rs 8,929.48 crore.
On a consolidated basis, the bank posted a net loss of Rs 4,230 crore as against a profit of Rs 3,032 crore earlier.
The SBI stock rose 0.38 per cent to Rs 317.65 on BSE in afternoon trade.
Meanwhile, state-owned UCO Bank also reported a net loss of Rs 633.88 crore for the first quarter ended June 2018.
This first quarter loss, however, has narrowed both on the annual and sequential basis. During April-June period of 2017-18, its net loss stood at Rs 663.02 crore. While in the March quarter of FY2017-18, the loss was Rs 2,134.36 crore.
However, total income in April-June 2018 increased to Rs 4,360.88 crore from Rs 4,237.04 crore in the same period a year ago, the bank said in a regulatory filing.
Bank's asset quality worsened with the gross non-performing assets (NPAs) hitting 25.71 per cent of gross advances as on June 30, 2018, as against 19.87 per cent by end-June 2017.
In absolute value, the gross bad loans or NPAs stood at Rs 29,786.41 crore by the end of the first quarter of this fiscal, up from Rs 25,054.21 crore.
Net NPAs were 12.74 per cent (Rs 12,558 crore) as against 10.63 per cent (Rs 12,010.95 crore).
Thus the provisions for bad loans were raised substantially to Rs 2,038.33 crore for the June quarter of FY'19 from Rs 1,204.25 crore a year ago.
UCO Bank said provision coverage ratio for non-performing loans is 65.15 per cent.
The bank said it was required to make additional provisions for accounts under provisions of Insolvency and Bankruptcy Code.
"Accordingly, the bank has made an additional provision of Rs 627.79 crore in respect of all NCLT admitted borrower accounts," UCO Bank said. The stock of the bank closed 3.23 per cent down at Rs 19.45 on BSE.
