SBM's net profit down on higher NPA

  It had a total income of 995.07 crore in the December 2009 quarter, 5.3 per cent lower than the same quarter last year. Similarly, SBM’s net profit at Rs 141.31 crore was 22 per cent lower than Rs 182.59 crore last year.

 Despite lower interest expenditure the bank’s profit suffered in the third quarter because of a much higher provisions. SBM has made a provision of Rs 56.17 crore (including Rs 33.22 crore on account of NPA) in the December 2009 quarter as against a negative provision (added to profits) of Rs 26.87 crore (NPA +Rs6.31 crore) in the previous quarter. SBM’s income was also lower due to a 46 per cent drop in other income at Rs 94.41 crore.   SBM, however, posted a net profit of Rs 322.14 crore for the nine months period ended December 2009, registering an year-on-year growth of over 12 per cent.

On a quarter on quarter basis the cost of deposits has declined by 15 per cent and the net interest income for the nine months period ended December 2009 increased by over 36 per cent.