Stock Fundamentals

SBI slips on asset quality

Radhika Merwin | Updated on February 13, 2018 Published on February 13, 2018

 

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.

 

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