Largest lender State Bank of India (SBI) missed analysts estimate during fourth quarter ended March 2018 result, by reporting a disappointing earnings. SBI posted a net loss of Rs 7,718.17 crore in Q4FY18 compared to net loss of Rs 3,442 crore in the corresponding period of previous year. Q4FY18 net loss widened compared loss of Rs 2,416.37 crore in the preceding quarter.

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A bloomberg poll of analysts expected SBI to report of Rs 1,728 crore during this quarter.

The bank’s net loss widened on the back of higher provisions and gross NPAs.

Here are key highlights from SBI’s financial performance.

Q4FY18 vs Q4FY17

Operating Profit declined by 8.24% from Rs. 17,309 Cr in Q4FY17 to Rs. 15,883 Cr in Q4FY18.

Net Interest Income declined by 5.18% from Rs. 21,065 Cr in Q4FY17 to Rs. 19,974 Cr in Q4FY18, contributed mainly by reduction in MCLR & Base Rate and increase in NPAs.

Interest Expenses on Deposits was  down by 6.28% YoY from Rs. 35,431 Cr in Q4FY17 to Rs. 33,206 Cr in Q4FY18 despite a growth in Deposits by 4.68% YoY.

Non-Interest Income improved by 2.23% from Rs. 12,222 Cr in Q4FY17 to Rs. 12,495 Cr in Q4FY18, driven mainly by higher fee income and recovery in written off accounts.

Fee Income is up from Rs. 7,434 Cr in Q4FY17 to Rs. 8,430 Cr in Q4FY18, a YoY growth of 13.40% with significant contribution from Cross Sell income which registered a growth of 65.83% during the period.

Recovery in Written-Off Accounts registered a robust growth of 21.18%.

Increase in Staff Expenses was contained at 3.82% from Rs. 8,914 Cr in Q4FY17 to Rs. 9,254 Cr in Q4FY18, despite higher provisions for wage revisions and gratuity.

Increase in Overhead Expenses was contained at 3.79% from Rs. 7,064 Cr in Q4FY17 to Rs. 7,332 Cr in Q4FY18.

Increase in Operating Expenses was contained at 3.80% YoY.

FY18 vs FY17

Operating Profit remained flat with a growth of 0.08% from Rs. 59,461 Cr in FY17 to Rs. 59,511 Cr in FY18.     

Net Interest Income remained flat at Rs. 74,854 Cr in FY18 vis-à-vis Rs. 75,199 Cr in FY17

Staff Expenses lower by 2.34% YoY from Rs. 33,975 Cr in FY17 to Rs. 33,179 Cr in FY18, mainly due to reduction in staff strength by 15,762.

Due to increase in provisions for NPAs andMark to Market on investment portfolio, the Bank incurred a net loss of Rs. 6,547 Cr in FY18.