State Bank of India posts Rs 4,876 crore net loss for the first quarter

The State Bank of India (SBI) on Friday posted a net loss of Rs, 4,876 crore in the first quarter ended on June 30, 2018. The bank has also stated that it has kept aside the mark-to-market provision of Rs, 5,900 crores and not used the dispensation provided by the Reserve Bank of India (RBI).

Addressing a press briefing, SBI chairman Rajnish Kumar said, "The SBI reports a net loss of Rs. 4,876 crore in the first quarter that ended on June 30 this year. The bank has also been aggressive as far provisioning of loans are concerned. The loan loss cover has also gone up by 300 basis points," at a post-results conference."

Speaking on the issue of increased gratuity and wage revision, Singh stated, "In the fourth quarter last year, we made a provision of Rs. 900 crore and this has been this time. Having said that, this will continue for another two more quarters, in September and December respectively. We have also provided wage revision from November 2017 at 10 percent and, that, the impact is another Rs. 900 crores."

There has also been an increase in the net interest income as it rose to 24 percent. The Net Interest Margin (NIM-Domestic) has also increased by 45 bps to Year over Year (YoY) to 2.95 percent as well as on June 2018.

As far as other income or non-interest income is concerned, it rose to 27 percent in the YoY excluding treasury income. The recovery and upgrades during the quarter also stood at Rs 14,856 crore, the bank said.

(ANI)