SBM Q3 net profit plummets 72%

SBM Q3 net profit plummets 72%

SBM Q3 net profit plummets 72%

Public sector lender State Bank of Mysore (SBM) on Wednesday reported 72 per cent drop in net profit at Rs 26.94 crore for the third quarter ended December 31, 2015, mainly on account of additional provisioning made as per RBI’s AQR (asset quality review) guidelines.

The bank had reported net profit of Rs 96.16 crore in the corresponding quarter last year.

However, the bank’s total income went up 2.76 per cent to Rs 1,940.22 crore compared with Rs 1,888.11 crore, a year ago, State Bank of Mysore said in a filing to the BSE.

The operating profit (before Provisions and Contingencies) was down 3.69 per cent to Rs 268.19 crore compared with Rs 278.48 crore. Net Interest Income (NII), or the difference between the interest earned on loans and the interest paid on deposits, stood at Rs 506.63 crore in the fiscal third quarter, up 2.76 per cent from Rs 493.23 crore, a year ago.

The other income rose 10.71 per cent to Rs 191.72 crore compared with Rs 173.18 crore.

The gross non-performing assets (NPAs) ratio stood at 5.48 per cent higher than 5.09 per cent. Net NPAs ratio stood at 3.12 per cent, marginally higher than 3.11 per cent.

Gross NPAs in absolute terms rose to Rs 2,914.74 crore as compared with Rs 2,583.61 crore. The bank’s Capital Adequacy Ratio (CAR) as per Basel III norms stood at 12.36 per cent compared with 11.65 per cent.

The bank has, during the nine months period, paid Rs 166.72 crore, on account of  wage arrears relating to the period from November 2012, to March 2015, out of provision of Rs 201.87 crore, made in the earlier years under Provisions and Contingencies.