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September 2018
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News Headlines
Hasan, Asghar, Rashid fined 15 per cent of their match fees        Ready to be sacked if ATK do not fare well: Coppell        Sensex ends in red after 1,000-pt flash crash        OYO to hire over 2,000 tech experts, engineers by 2020        Thousands rally across Russia against raising pension age        Pak PM Imran hits out at India, calls its response "arrogant" for cancelling talks        Sisodia, AAP MLAs discharged in case related to 2014 protest        We have no role in selection of Reliance Defence for Rafale deal: Govt        Modi, Ambani carried out Rs 1.3 lakh cr 'surgical strike' on defence forces: Rahul on Rafale issue        Chekka Chivantha Vaanam: Second trailer released        Golden Globe Race: Indian Navy Officer Abhilash Tomy injured; INS Satpura dispatched for rescue        India Calls Off Talks With Pak, Says "Imran Khan's True Face Exposed"        Indian govt wanted Reliance for Rafale, we didn't have a choice: Ex-French prez Hollande        Wreckage of Captain Cook’s ship found off US coast        Death toll reaches 136 in Tanzania ferry disaster with scores missing        Ravindra Jadeja, Rohit Sharma take India to comprehensive 7-wicket win        Naomi Osaka Eases into WTA Tokyo Event Semi-final        Let the boundaries go away: Pakistani youth sings Jana Gana Mana with full respect        Three kidnapped cops killed by terrorists in Jammu and Kashmir        Freak penne trending with dislikes and trolls        
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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
Kannur International Airport: Kerala to be the first state with four international airports
 Malappuram: With Kannur International Airport becoming operational, Kerala will be the first state i  
Bar bribery case: Court dismisses the vigilance report
State Kalolsavam to be held in December
Actor Captain Raju passes away at 68
INTERNATIONAL NEWS
Thousands rally across Russia against raising pension age
 Moscow, Sep 22 (AP) Thousands rallied across Russia on Saturday to protest the government's plan to
Pak PM Imran hits out at India, calls its response "arrogant" for cancelling talks
Wreckage of Captain Cook’s ship found off US coast
Death toll reaches 136 in Tanzania ferry disaster with scores missing
NATIONAL NEWS
Sisodia, AAP MLAs discharged in case related to 2014 protest
 New Delhi Sep 22 (PTI) A Delhi court on Saturday discharged Deputy Chief Minister Manish Sisodia, AA
We have no role in selection of Reliance Defence for Rafale deal: Govt
India Calls Off Talks With Pak, Says "Imran Khan's True Face Exposed"
Indian govt wanted Reliance for Rafale, we didn't have a choice: Ex-French prez Hollande
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