State Bank of India (SBI), the country’s largest lender, has released shocking results. Surprisingly, net losses were reported at Rs 2,416.37 crore in the quarter ended December 2017-18. The bank had a net profit of Rs 2,610 crore in the same quarter last year. Provisions and contingencies grew by 111 per cent to Rs 18,876.21 crore in the year-ago period. In the same period in the fiscal year 2016-17, it was only Rs 8,942.83 crore. Gross NPAs also increased to Rs 1.99 lakh crore in Q3. They are in the range of Rs.1.08 lakh crore in the quarter ending on Q3, 2016-17.
Net interest income grew only by 26.88 per cent to Rs 18,687.57 crore in the year-ago period. Other revenues declined by 16.3 per cent. Net NPAs also grew to the bank. The main reason for the loss of the bank was the increase in provision of huge provisions and loss of assets as a quality asset. The bank has also avoided analysts’ expectations. Shares of SBI closed 1.68 per cent lower at Rs 296.40 on profit-booking. After market hours, SBI announced its results.