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SBI posts Rs 2,416-cr loss, provisions for bad loans shoot up (Lead)
Mumbai/Chennai, Feb 9 (IANS) India’s largest bank, State Bank of India (SBI), on Friday said it closed the third quarter of the current fiscal ended December 31 with a net loss of Rs 2,416.37 crore.
In a regulatory filing to the BSE, the bank said it had posted a net profit of Rs 2,610 crore during the corresponding period the previous year.
For the quarter ended on December 31, 2017, the SBI’s total income was Rs 62,887.06 crore, up from Rs 53,587.51 crore in the quarter ended December 31, 2016.
During the quarter under review, the provisions shot up to Rs 18,876.21 crore, from Rs 8,942.83 crore in the previous corresponding period.
Of the above amount, total provisions against non-performing loans were Rs 17,759.72 crore for the period under review, up from Rs 7,244.55 crore provided during the corresponding period of the previous year.
The SBI’s gross non-performing assets (GNPA) stood at Rs 199,141.34 crore and the net NPAs at Rs 102,370.12 crore as of December 31, 2017, up from GNPA of Rs 108,172.32 crore and net NPAs of Rs 61,430.45 crore during the same period last fiscal.
According to the SBI, during the period under review, corporate credit was subdued owing to the strategy to grow in better rated corporates and restricting growth in stressed sectors.
On the other hand, personal segment loans — home, automobile and others — grew last quarter.
As to the slippages in assets quality, the SBI said the total slippage during the quarter stood at Rs 25,836 crore, of which corporate sector accounts for Rs 21,823 crore and the balance is from retail, small and medium enterprises (SME) and agriculture.
“It is really shocking and surprising. We did not expect the bank to post a net loss. It is time the Reserve Bank of India should revisit its provisioning norms. Now, for loans to telecom sector, even if the loans are classified as standard, banks have to provide 10 per cent as a matter of caution as the telecom sector is not doing well,” All India State Bank Officers Federation President D. Thomas Franco Rajendra Dev told IANS.
He said he did not agree that the staff morale will go down because of the net loss posted by the bank.
The bank expects major resolution in the cases referred to National Company Law Tribunal through FY2019.
On containing operating expenses, the SBI said from FY18 to FY20 a total of 41,921 employees would retire while the recruitments at the entry level will be on the lower side, which would reduce the total cost.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.