Public sector lender State Bank of Hyderabad (SBH) today said its net profit for the quarter ended March 31 dropped by 43.2 per cent to Rs 253 crore due to higher provisioning for non-performing assets.
Net profit for the same quarter during last fiscal stood at Rs 445.5 crore.
The bank's Managing Director Santanu Mukherjee said the income from interest was down by 5.64 per cent to Rs 3,434.63 crore during the quarter against Rs 3,639.85 crore in the fourth quarter of 2014-15.
SBH allocated Rs 664.34 crore towards contingencies and provisioning during the January-March quarter against Rs 431.17 crore in the same quarter of the previous fiscal.
"Adequate provisions suggested by RBI in respect to stressed accounts identified under early recognition process have been made by the bank. In addition to these, additional provision is also made to take care of future requirements of other assets under stress," Mukherjee said at a press conference.
The bank posted a 19.15 per cent drop in its net profit at Rs 1,064.93 crore for the full financial year (2015-16) as against Rs 1,317.13 crore during 2014-15.
Mukherjee said operating profit has shown an impressive growth of 13.01 per cent y-o-y to Rs 3,293 crore against Rs 2,913.66 crore in 2014-15.
