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Bengaluru-based public sector lender State Bank of Mysore on Thursday reported a 27 per cent rise in net profit at Rs 136 crore for the fourth quarter ended March, compared to Rs 107 crore in the corresponding quarter of FY14.
Total income for the quarter went up 12.4 per cent to Rs 2,051 crore, compared to Rs 1,825 crore a year earlier.
Operating profit for the quarter rose about 11 per cent to Rs 402 crore from Rs 361 crore a year earlier.
The rise in profits was due to a huge reduction in provisions and contingencies during the quarter. The bank provided Rs 184 crore as against Rs 278 crore in the year-ago quarter, a decline of 33.8 per cent.
Provisions towards non-performing assets were lower by 65.5 per cent, at Rs 70 crore as against Rs 203 crore in the corresponding period a year earlier.
Net interest income grew seven per cent to Rs 553 crore during the quarter compared to Rs 517 crore in the year ago quarter.
The capital adequacy ratio of the Bank under Basel-II increased to 11.42 per cent from 11.08 per cent a year ago. The return on assets improved to 0.70 per cent from 0.59 per cent. The percentage of gross and net non-performing assets declined to 4 per cent and 2.16 per cent respectively at the end of fourth quarter as against 5.54 per cent and 3.29 per cent respectively in the same quarter last year.
“The reduction has taken place across all segments & sectors. SBM is one of the few Banks to have successfully bucked the trend of rising NPAs and achieved reduction in both absolute and percentage terms,” the Bank said in a statement.
State Bank of Mysore informed BSE that the Board of Directors of the Company at its meeting have declared a final dividend of 10 per cent (Re 1 per share).
The Bank's stock closed 11.38 per cent higher at Rs 529.60 per share on BSE today.
