 "State Bank of Hyderabad net down Rs 253 cr")
SBH, an associate banking unit of State Bank of India, posted a net profit of Rs 445 crore in January-March 2015. Its total income for the reporting quarter declined to Rs 3,907 crore, from Rs 4,145 crore in the year-ago period.
Its net profit for FY16 was Rs 1,064 crore against Rs 1,317 crore for FY15. Santanu Mukherjee, managing director of SBH, said net profit came down due to higher provisions made for stressed loans identified in the Asset Quality Review.
More From This Section
The bank has decided to skip payment of dividend 2015-16 on rise in provisions for non-performing assets, he added. The lender made provisions of Rs 538 crore in the fourth quarter of FY16, from Rs 153 crore in the year-ago quarter.
It also set aside Rs 330 crore as buffer to take care of future slippage from weak loans worth Rs 4,000 crore. These accounts belong to steel, textile, power and infrastructure sectors.
The bank’s gross NPAs rose to Rs 6,590 crore (5.75 per cent) in March 2016 from Rs 4,984 crore (4.59 per cent) at the end of March 2015. It sold NPAs worth Rs 1,679 crore to asset reconstruction companies in FY16.
The provision coverage ratio was 57 per cent at the end of March 2016. The capital adequacy ratio was 11.62 per cent at the end of March 2016, well above regulatory requirements. It has estimated additional capital requirement at Rs 3,600 crore for three years.