However, the bank expects an improvement in performance in the next financial year. "The current quarter is definitely disappointing, but going forward, there is a lot of optimism. From April, we will all start on a positive note. I don't want to sound very, very optimistic on the fourth quarter, neither very pessimistic," said chairman Rajnish Kumar.
SBI, which accounts for more than a fifth of India's banking assets, said a Reserve Bank audit of its books for the past financial year led to the addition of Rs 23,239 crore in bad loans, contributing to higher provisions. That coupled with lower trading income due to rising bond yields resulted in a net loss of Rs 2,416 crore for the three months ending December 31, compared with a restated net profit of Rs 1,820 crore a year earlier.
SBI Chairman Rajnish Kumar, who took the helm in October, said bad loan additions were peaking. He said the bank's focus on retail lending and other steps would lift performance in the next financial year.
SBI shares were trading nearly 2.5 per cent lower at Rs 288 today.
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