SBI Reported 862 Crore Profit. It Was Actually A Loss Of 6,968 Crore

After adjusting for divergence bank incurred notional loss of Rs 6,968 crore as against reported profit of Rs 862 crore in financial year 2019.

SBI: Gross non-performing assets as assessed by RBI came in at Rs 1,84,682 crore.

Highlights

  • Divergence in assessment of bad loans compared with RBI figures: SBI
  • Gross bad loans as reported by SBI were at Rs 1,72,750 crore in 2018-19
  • According to RBI report, SBI's gross NPAs were at Rs 1,84,682 crore

State Bank of India (SBI), the country's largest lender by assets, under-reported bad loans or non-performing assets (NPAs) worth Rs 11,932 crore for financial year 2018-19. After taking into account divergence in NPAs and provisioning, SBI said its net notional loss stood at Rs 6,968 crore in 2018-19. SBI had in May this year reported a net profit of Rs 862 crore for the period. Market regulator Sebi mandates banks to disclose any divergence in their assessment of asset classification and provisioning compared with the RBI's estimation. (Also Read: SBI Home Loan Borrowers To Pay Lower EMIs From December 10)

In a regulatory filing with BSE on Tuesday, SBI reported divergence of Rs 11,932 crore in its assessment of gross non-performing assets for the year ended March 2019 compared with the figures in the Reserve Bank of India's Risk Assessment Report.

Gross NPAs as reported by State Bank of India were at Rs 1,72,750 crore in financial year 2018-19. However, according to the RBI's Risk Assessment Report, the bank's gross bad loans were at Rs 1,84,682 crore.

On a net basis, SBI reported non-performing assets worth Rs 65,895 crore for the financial year ended March 2019, which was Rs 11,932 crore short of the RBI's assessment of Rs 77,827 crore.

In its filing during market hours on Tuesday, SBI said the impact of divergence in net NPAs will be Rs 687 crore in the quarter ending December 31, 2019.

SBI said its provisioning for bad loans had stood at Rs 1,06,856 crore in 2018-19, as against Rs 1,18,892 crore as assessed by the RBI, highlighting a divergence of Rs 12,036 core.

After subsequent provisions made for NPAs in the current financial year, the impact of provisioning in the current quarter will be Rs 4,654 crore.

After taking into account the divergence in provisioning, SBI said its adjusted notional net loss was at Rs 6,968 crore for 2018-19, as against a net profit of Rs 862 crore reported by it in May this year.

Shares of SBI ended 1.04 per cent lower at Rs 313.45 apiece on the BSE, under-performing the benchmark Sensex index which settled 0.61 per cent lower amid a broad-based selloff.

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