State Bank of India posts record loss of Rs 77 bn in Q4; stock rises 3.7%

Surge in provisions for NPAs, erosion in value of investments take toll

Mumbai: The country’s largest lender, State Bank of India (SBI), posted its highest-ever net loss of Rs 77.18 billion for fourth quarter ended March 2018 (Q4) as asset quality worsened and it made large provisions for bad loans. The higher provisions for the erosion in the value of the bond portfolio due to hardening yields and wage revision, and enhancement in the gratuity ceiling (Rs 9 billion) added to the losses.

This was the second consecutive quarterly loss in 2017-18 for SBI. The bank had posted a net loss of Rs 24.16 billion in the December 2017 quarter (Q3FY18).