Shares of State Bank of India today settled down nearly 3 per cent on the bourses after the company reported weak third quarter earnings. Accordingly, the market capitalisation of SBI declined by Rs 6,819.23 crore to Rs 2,49,034.75 crore at the end of today's trading session. SBI Group on February 9 had reported a massive Rs 1,886.57 crore net loss for the December quarter of the current fiscal as its bad loans and provisions spiked.
It had, in contrast, reported a net profit of Rs 2,152.14 crore in the same quarter of the last fiscal. During the day, the company's stock opened at Rs 288, then slumped 3.85 per cent to touch an intra-day low of Rs 285 and finally ended at Rs 288.50, down 2.67 per cent on BSE. The stock was the top loser in the 30-share benchmark index Sensex, even as the broader market settled with gains of 294.71 points. On the NSE, the stock opened at Rs 288.25, then fell to an intra-day low of Rs 285.15 and finally settled at Rs 290.10, down 2.13 per cent. Edelweiss Securities in a research note said, "While Q3FY18 performance disappointed in terms of revenue momentum and slippage recognition, operating metrics seem to have bottomed out this quarter". The nation's largest lender saw its net bad loans ratio spiking to 5.61 per cent of advances, from 4.24 per cent during the third quarter of 2017-18. The gross dud assets ratio jumped from 7.23 per cent to cross the double-digit mark at 10.35 per cent during the quarter under review.
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