State Bank of India (SBI), the country’s largest bank, posted a quarterly loss for the first time in nearly 19 years — of Rs 24.16 billion in the December quarter of 2017-18 — owing to a sizeable increase in provisioning for bad loans.This came after the Reserve Bank of India (RBI) asked the lender to reclassify some corporate loans as non-performing assets (NPAs).The net loss came as a surprise, given that the street was expecting the bank to post a net profit of Rs 19 billion. The bank also provided for mark-to-market losses worth Rs 34 billion on its investment portfolio.The operating performance was also slightly lower than the expectations of analysts.The last time SBI reported a quarterly loss was in January-March 1999. Terming it a disappointing quarter, SBI Chairman Rajnish Kumar said the bottom line was hit by lower trading income due to a hardening of bond yields, leading to a significant depreciation in the bank's investment portfolio.
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