Shares of SBI slump over 3 per cent on weak third qtr earnings

Shares of SBI slump over 3 per cent on weak third qtr earnings

New Delhi: Shares of State Bank of India on Monday slumped more than 3 per cent in morning trade on the bourses after the company reported weak third quarter earnings.

The SBI Group on February 9 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 for the October-December quarter of the last fiscal, 2016-17.

Reacting to the numbers, shares of the company opened at Rs 288 and slumped 3.85 per cent to touch an intra-day low of Rs 285 in morning trade on the BSE.

Similar movement was seen on the NSE as well where the company opened at Rs 288.25, then fell to a low of Rs 285.15, registering a fall of 3.79 per cent over its previous closing price.

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 meanwhile from 7.23 per cent to cross the double digits mark at 10.35 per cent during the quarter under review.

PTI