SBI slips on asset quality


Weak loan growth and sharp slippages led to SBI reporting a loss of ₹2,146 crore in the latest December quarter. After a sharp fall to ₹9,026 crore in the September quarter, slippages have climbed back to ₹25,836 crore in the December quarter. The RBI’s annual risk-based supervision exercise has led to the spike in slippages. SBI has reported bad loan divergence to the tune of ₹23,239 crore pertaining to FY17.

Aside from the 83 per cent jump in bad loan provisioning, weak loan growth has also impacted earnings. SBI’s net interest income grew by a muted 5.2 per cent Y-o-Y on the back of muted 2 per cent growth in advances; large, mid corporate and SME loans declined by 4.2 per cent.


Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get


This article is closed for comments.
Please Email the Editor