SBM net profit drops 45% to Rs 85 crore in Q3

Decline due to spurt in NPAs, total income up 7% to Rs 1,730 cr

Bangalore-based State Bank of Mysore (SBM), an affiliate of State Bank of India Group, today reported a massive fall of 45 per cent in its net profit at Rs 85 crore for the third quarter ended December 31, 2013 compared to Rs 154.77 crore reported in the corresponding quarter last fiscal. The total income has gone up by 7 per cent to Rs 1,730 crore as against Rs 1,616 crore in the year ago period.

The decline in net profit is mainly on account of a massive jump in its provisions towards non-performing assets. The provisions have gone up by 2.25 times to Rs 133 crore as against Rs 58 crore in the same period last year. The net NPAs have gone up by 2.24 times to Rs 1,889 crore in the third quarter from Rs 842 crore in the year ago period.

The net interest income was flat at Rs 462.4 crore as against Rs 461.2 crore in the year ago period.

The operating profit of the Bank for the period has declined 19 per cent to Rs 247 crore from Rs 305 crore in the December quarter last fiscal.

The Bank’s return on assets has halved to 0.49 per cent from 0.98 per cent a year ago. The capital adequacy ratio under Basel-II stood at 11.19 per cent.