SBM's Q2 net hit by provisions

SBM's Q2 net hit by provisions


The profit growth was small due to two reasons—a higher provision of 17.5 per cent made for revisions in wages amounting to Rs 32.62 crore.

Secondly, the bank has provided for Rs 36 crore in the second quarter for the previous year’s under provision of agricultural debt relief.

Total income up

The Bank’s total income in the second quarter was at Rs 958.46 crore 17 per cent higher than Rs 823.82 crore in the same quarter last year.

State Bank of Mysore’s non-performing assets have also risen to 196 crore in the quarter under review as against 150 crore in the corresponding quarter of the previous year.
Addressing the media, State Bank of Mysore Managing Director Dilip Mavinkurve said, “Non-performing assets have risen as a few industries like food processing, power generation and textiles were unable to meet commitments. We will try and take steps to see if we can take adequate measures and put some rehabilitation packages in place.”
Future plans

Speaking about the future plans of the bank, he said, “Discussions are on with the State Bank of India to improve the bank’s capital position either through a rights or equity issue.”
He added that the bank was looking at raising Rs 2,000 crore in the next five years.

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