New Delhi: The State bank of India (SBI) has reported a net loss of Rs. 7,718 crores in the fourth quarter of the Financial year 2017.
According to sources from the bank, the losses incurred were on account of lower trading income and significant MTM losses due to hardening of bond yields, incremental provision during the quarter for non-performing assets (NPAs) and higher provisioning on account of wage revision and enhancement in gratuity ceiling.
In Q4 of the financial year 2017-18, the Bank's operating profit declined by 8.24 percent from Rs. 17,309 crore in Q4 last fiscal to Rs.15, 883 crores in the fourth quarter of the current fiscal.
Meanwhile, net interest income for the same period declined by 5.18 percent from Rs. 21,065 crore to Rs. 19,974 crore, contributed mainly by a reduction in MCLR and base rate and increase in NPAs.
Gross NPAs increased from Rs.1, 77, 866 crores as of March 2017 to Rs. 2, 23, 427 crores as of March this year, whereas net NPA increased from Rs. 96,978 crore to Rs. 1,10,855 crore during the same period.
The Bank further noted that 80 percent of the total transactions were undertaken through alternate channels, thus registering a growth of 500 bps Year-on-Year.