SBI falls over 1% ahead of Q4 results; net loss seen at Rs 1,270.5 crore

State Bank of Indias shares lost over 1 percent in the morning trade as investors turned cautious ahead of its March quarter results announcement later in the day.

The stock touched an intraday high of Rs 244.30 and an intraday low of Rs 241.80.

The countrys biggest bank is likely to post a loss of Rs 1,270.5 crore for the January to March quarter in FY18, pinched by deterioration in asset quality and surge in provisions towards the same.

The loss is projected by a Reuters poll in comparison to a net profit of Rs 2,814.82 crore in the same quarter a year ago.

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In the December quarter, SBI had posted a surprise net loss of Rs 2,416 crore after its gross non-performing assets (NPAs) jumped to 10.35 percent of total loans, highest in over 15 years.

For the quarter under review, provisions towards likely losses in its bond portfolio due to rising government bond yields and further additions due to the Reserve Bank of Indias (RBI) revised bad loan framework may hit the lenders bottomline.

Provisions towards bad loans during the quarter are estimated to rise by 26 percent to Rs 14,834 crore, up from Rs 11,740 crore in the corresponding quarter last year.

Caught by the heavy storm of NPA clean-up by the central bank and the insolvency accounts leading to higher provision requirement, reports suggest that SBI could see more stress in its loans for the last quarter of FY18.

A Motilal Oswal report, pegs its gross NPAs at 11.5 percent of total loans as on March end, as against 10.35 percent in the previous quarter and 9.1 percent in the year-ago quarter.

In the past one year, the stock has fallen around 17 percent, while its three-day movement has been around flatline. At 09:51 hrs State Bank of India was quoting at Rs 243.85, down Rs 1.25, or 0.51 percent.

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