State Bank of India mirrors state of India


State Bank of India mirrors state of India

State Bank of India (SBI) has reported a loss of .`4,875 crore for the April-June quarter (Q1) for 2018-19. Analysts are disappointed: the consensus(आम सहमति/आम राय) was an expected profit of .`238 crore. This is the third successive(लगातार) quarter of losses for the bank. Worryingly(चिंता की बात यह/तंग करते हुए), SBI has started bleeding from multiple sores, not just from bad loans to big companies. Trading income has fallen(गिरा हुआ), a sign of the drag in the economy; harder bond yields(पैदावार/उपज), marked to market, have dented(भुगतान किया/अंदर ठूंसना) income. Loans have shrunk 3% quarter on quarter, unexpectedly(अप्रत्याशित रूप से/अचानक). Textiles, where one single borrower is in the red for .`2,000 crore, and power, where the bank’s exposure is .`17,000 crore, are still sputtering — the latter is resisting banks’ attempts to enforce new bankruptcy proceedings to recover debt.

The arc of bad loans has expanded to retail, small and medium enterprises (SMEs) and farming, sectors for which SBI is the single-largest formal lender. Farm loan waivers, administered by state governments, were not expected to dent bank portfolios(विभागों).

But SBI, with its pan-India operations and hinterland reach, cannot be immune(प्रतिरक्षा/छूट प्राप्त) . The SBI management’s initial .`50,000-crore bad-debt forecast was based on the expected performance of big corporate loans, but farm loan waivers have begun to bite(काटना/खा जाना) as state governments delay their payment to the banks. SME loans will also cause pain, though the bank is ignoring the threat(ख़तरा/धमकी) now.

SBI has not been idle: it has increased(बढ़ा हुआ) provisioning(प्रावधानीकरण) from.`8,929 crore in Q1last year to .`19,228 crore now. Gross non-performing loans have fallen marginally (मामूली )from 10.9% of total lending in Q4 2017-18 to 10.7%. Net interest income, the core of its business, has gone up 24% in a year. Now, India’s largest lender(ऋणदाता/उधार देनेवाला) awaits effective reform in the power sector to rescue(बचाव/मुक्ति) stranded assets, besides sustained (निरंतर) economic growth, to get out of its rut.



Important vocabulary

1.Dented(भुगतान किया/अंदर ठूंसना)
Synonyms: nick, dig, dimple, dint, furrow
Antonyms: fill, flush, bulge

2.Bite(काटना/खा जाना)
Synonyms: pain, sting, wound, chaw, chomp

3.Marginally (मामूली )
Synonyms: kind of, lightly, marginally, somewhat, hardly
Antonyms: a lot, considerably, greatly

Synonyms:delivery, recovery, relief, salvage, deliverance
Antonyms: failure, danger, peril

5.Consensus(आम सहमति/आम राय)
Synonyms:accord, consent, harmony, unanimity, unity
Antonyms: denial, disagreement, dissension, opposition, refusal

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