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Last Updated : Dec 10, 2019 02:52 PM IST | Source: Moneycontrol.com

PSU Bank index dips over 1% after SBI reports bad loan divergence for FY19

As a result the bank has to make additional provisioning of Rs 12,036 crore in the balancesheet and the notional loss would have been at Rs 6,968 crore.

 
 
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Shares of State Bank of India fell a percent intraday on December 10 after reporting about Rs 12,000 crore divergence in their bad loans for fiscal 2018-19.

This could be one of the reasons for correction in Nifty PSU Bank index that fell 1.4 percent at the time of publishing this copy. State Bank of India was down 0.71 percent at Rs 314.50.

Allahabad Bank, J&K Bank, Central Bank of India, Union Bank, Syndicate Bank, PNB, Indian Bank, Oriental Bank of Commerce, Bank of India and Bank of Baroda were down 1-5 percent.

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As per the assessment done by the RBI, the gross NPA of the country's largest lender was Rs 11,932 crore more at Rs 1,84,682 as against Rs 1,72,750 reported by the bank for 2018-19, SBI said in a regulatory filing.

Similarly, the net NPA was 77,827 crore as compared to disclosed figure of Rs 65,895 crore, reflecting divergence of Rs 11,932 crore, it said.

As a result, the bank has to make additional provisioning of Rs 12,036 crore in the balance sheet and the notional loss would have been at Rs 6,968 crore.

SBI had posted a profit of Rs 862 crore for 2018-19 in May this year.

It further said after subsequent slippage or upgradation during the current financial year, the remaining impact on the gross NPAs during the third quarter of current fiscal is Rs 3,143 core. The impact on provisioning during the third quarter stood at Rs 4,654 crore, it added.

(With inputs from PTI)

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First Published on Dec 10, 2019 02:52 pm
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