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Huge attack of loss on SBI in first three months of the year

A mass loss of Rs.7, 718 Crore (Approx. $1.1 Billion) has been slammed on the face of SBI. It is the largest case that has come across after the change in regulations for bad loans. But the loss happened in the 3 months is more than the firm might have expected.

Analysts thought that loss would be of around Rs.1,285 Crore, according to Thomson Reuters data.

Earlier SBI faced the loss of Rs.2,416 Crore in the December quarter.

Management had indicated that the quarter’s results would be “very bad”, so this was largely expected, said A K Prabhakar, head of research at IDBI Capital. “The worst is over for SBI Shares rallied to close nearly 4 percent higher after the bank said that it expects a key bad loan metric to fall sharply in two years.”

Gross bad loans as a percentage of total loans rose to 10.91 percent from 10.35 percent three months earlier and 6.90 percent a year prior, the lender said in a statement.

Due to the tighter instructions imposed by the RBI in February is held responsible for this massive loss to banking firms.

After counting the entire damage caused, SBI’s bad loans are now at number 1 and PNB has been shifted to the second position in the matter of gross loss.

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