SBI falls nearly 5% in five sessions

State Bank of India (SBI) declined 1.69% to Rs 317.8, extending losses for fifth consecutive session.

The Supreme Court on Thursday (16 January) rejected pleas by Vodafone Idea, Bharti Airtel and Tata Teleservices to review the 24 October verdict that widened the definition of adjusted gross revenue (AGR), leaving the three telcos collectively facing more than Rs 1.02 lakh crore in additional licence fees, spectrum usage charges (SUC), penalties and interest.

The order raises risks for lenders to the companies as payment of the dues may erode the telecom operators' cash flows and their ability to service their debt. SBI reportedly has an exposure of Rs 12,000 crore to Vodafone Idea.

Shares of SBI extended their losing streak to fifth consecutive session. The stock has tumbled 4.35% in just five trading sessions from its previous closing high of Rs 332.25 on 10 January 2020.

The bank will announce its Q3 December 2019 result on 31 January 2020.

SBI reported a 218.75% rise in net profit of Rs 3011.73 on a 9.37% increase in total income to Rs 72,850.78 crore in Q2 September 2019 over Q2 September 2018.

The ratio of gross NPAs to gross advances stood at 7.19% as on 30 September 2019 as against 7.53% as on 30 June 2019 and 9.95% as on 30 September 2018. The ratio of net NPAs to net advances stood at 2.79% as on 30 September 2019 as against 3.07% as on 30 June 2019 and 4.84% as on 30 September 2018.

As on 30 September 2019, the Government of India held 57.13% stake in the bank.

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