SBI slips after weak Q3 results

State Bank of India fell 2.16% to Rs 290 at 10:45 IST on BSE after the bank announced weak Q3 results after market hours on Friday, 9 February 2018.

Meanwhile, the S&P BSE Sensex was up 196.19 points, or 0.58% to 34,201.95.

On the BSE, 14.70 lakh shares were traded in the counter so far compared with average daily volumes of 17.35 lakh shares in the past one quarter. The stock had hit a high of Rs 291.80 and a low of Rs 285 so far during the day. The stock hit a record high of Rs 351.50 on 26 October 2017. The stock hit a 52-week low of Rs 241.25 on 19 October 2017.

The stock had underperformed the market over the past 30 days till 9 February 2018, falling 1.85% compared with 1.44% fall in the Sensex. The scrip had also underperformed the market in past one quarter, falling 11.04% as against Sensex's 2.07% rise. The scrip had also underperformed the market in past one year, rising 7.29% as against Sensex's 20.02% rise.

The large-cap company has equity capital of Rs 863.21 crore. Face value per share is Re 1.

State Bank of India (SBI) reported net loss of Rs 2416.37 crore in Q3 December 2017 as against net profit of Rs 2610 crore in Q3 December 2016. Total income rose 17.4% to Rs 62887.06 crore in Q3 December 2017 over Q3 December 2016.

The bank's gross non-performing assets (NPAs) stood at Rs 199141.34 crore as on 31 December 2017 as against Rs 186114.60 crore as on 30 September 2017 and Rs 108172.32 crore as on 31 December 2016.

The ratio of gross NPAs to gross advances stood at 10.35% as on 31 December 2017 as against 9.83% as on 30 September 2017 and 7.23% as on 31 December 2016.

The ratio of net NPAs to net advances stood at 5.61% as on 31 December 2017 as against 5.43% as on 30 September 2017 and 4.24% as on 31 December 2016.

The bank's provisions and contingencies rose 111.08% to Rs 18876.21 crore in Q3 December 2017 over Q3 December 2016. Of this, provisions for NPAs rose 145.15% to Rs 17759.72 crore in Q3 December 2017 over Q3 December 2016.

Provision coverage ratio of the bank was at 65.92% as on 31 December 2017.

In a separate announcement after market hours on Friday, 9 February 2018, SBI said that its Central board approved issuing equity shares of face value of Re 1 each, ranking pari-passu with the existing equity shares of the bank in all respect including payment of dividend, by way of preferential issue to the Government of India (GoI), not exceeding Rs 8800 crore.

Government of India holds 56.61% stake in State Bank of India (as on 31 December 2017).

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