SBM Q4 net down 34% to Rs 76.19 cr

SBM Q4 net down 34% to Rs 76.19 cr

 State Bank of Mysore (SBM), a subsidiary of State Bank of India (SBI), on Monday reported net profit of Rs 76.19 crore for the quarter ended March 31, 2013, which is a decline of 34.40 per cent, from the comparable quarter of last fiscal at Rs 116.15 crore.

The bank ascribed the slump in profit to a huge provision made by it towards non-performing assets (NPAs) at Rs 229.69 crore during the March-quarter as against Rs 107.18 crore in Q4FY12. 

During the quarter under review, the bank's total income rose to Rs, 1,721.48 crore versus Rs 1,525.16 crore in Q4FY12.  Addressing a press conference, the bank’s MD Sharad Sharma said NPAs from the farming sector alone accounted for 10.1 per cent. Net NPAs stood at 2.69 per cent as of March 31, 2013, he said.
Elaborating on the NPAs, Sharma pointed that for the full year 2012-13, gross NPAs increased to Rs 2,081 crore from Rs 1,503 crore in FY12.  Of this, increase in NPAs in corporate segment was most pronounced at Rs 1126 crore, he said.  

When quizzed about NPAs from Kingfisher Airlines, the bank’s CGM Saswata Chaudhary clarified: "Those NPAs were not directly from KFA, as they were initially from Deccan Airlines.” He declined to specify the quantum of NPA citing client confidentiality.

During fiscal 2013, SBM's net profit declined 13 per cent at Rs 416.10 crore versus Rs 369.15 crore in FY2012.

Responding to a query, Sharma said in compliance with Sebi rules, the bank will have to bring down the promoters equity in PSU banks also by 10 per cent. “So we will be contemplating a QIP to achieve this at an appropriate time,” he said. The bank hinted at a QIP in the range of Rs 70-75 crore.”

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