Shares of State Bank of India today tumbled over 5 per cent, eroding Rs 13,724.51 crore from its market valuation, after the bank's bad loans spiked for the quarter ended June.
The stock tanked 5.36 per cent to end at Rs 280.65 on BSE. During the day, it plummeted 6.17 per cent to Rs 278.25.
At NSE, shares of the company plunged 5.57 per cent to close at Rs 280.15.
The company's market valuation also declined by Rs 13,724.51 crore to Rs 2,42,258.49 crore.
In terms of equity volume, 42.50 lakh shares of the company were traded on BSE and over 6 crore shares changed hands at NSE during the day.
The country's largest lender SBI today reported over 5- fold jump in consolidated net profit to Rs 2,006 crore for the June quarter of the current fiscal even as non-performing assets (NPAs) or bad loans spiked sharply.
Posting first quarterly earnings after the merger with its five associate banks and Bharatiya Mahila Bank Ltd (BMBL), the state-owned bank in a statement said that its net profit in the April-June quarter of last fiscal, 2016-17, was Rs 374 crore.
It said the figures, ratios and other information are based on the merged audited numbers. "Historical data has been arrived at by aggregating the audited numbers of the erstwhile associate banks, Bharatiya Mahila Bank and SBI for comparison purposes."
Asset quality of the bank slipped substantially because of higher accruals of bad loans from the books of associates, it added.
There were slippages with gross NPAs rising to 9.97 per cent of the gross advances as on June 30, 2017, from 7.40 per cent as at end-June 2016.
Net NPAs or bad loans too soared to 5.97 per cent of the net advances by June end of this fiscal, up from 4.36 per cent in the year-ago period.
"Gross NPAs increased from Rs 1,37,662 crore as on June 2016 to Rs 1,88,068 crore as on June 2017," SBI said.
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