SBM Q2 net profit up 30% to Rs 132 crore

Public sector lender State Bank of Mysore (SBM) on Monday reported a 29.52 per cent rise in net profit at Rs 131.98 crore for the second quarter ended September 30, 2015, on account of lower provisioning for bad loans.

The bank had reported a net profit of Rs 101.90 crore in the corresponding quarter of the last financial year.

The rise in profit was mainly due to lower provisioning at Rs 116.40 crore during the quarter under review, compared with Rs 216.56 crore in the year-ago period.

“During the half-year period, the bank paid Rs 166.72 crore on account of wage arrears relating to the period from November 2012 to March 2015 out of a provision of Rs 201.87 crore made earlier. The excess provision of Rs 35.15 crore has been reversed to employee cost,” the bank said in a statement.

The bank’s total income for the quarter went up 3.65 per cent to Rs 1,969.96 crore compared with Rs 1,900.52 crore in the year-ago quarter, the bank said in a filing to the BSE.

However, the operating profit declined 12.82 per cent to Rs 302.78 crore compared with Rs 347.34 crore. Net Interest Income, or the difference between the interest earned on loans and the interest paid on deposits, grew at 2.46 per cent to Rs 526.27 crore compared with Rs 513.61 crore.

The percentage of gross and net NPAs declined to 4.19 per cent and 2.22 per cent respectively at the end of the second quarter as against 5.07 per cent and 2.94 per cent respectively in the same quarter last year. The bank’s stock closed 0.52 per cent lower at Rs 426.75 per share on the BSE.