SBH profit dips 22%

Written by fe Bureau | Hyderabad | Updated: Jul 29 2014, 07:06am hrs
State Bank of Hyderabad (SBH) reported a 22% decline in net profit for Q1FY15 to R227 crore from R294 crore in the year-ago period. This was largely due to a dip in net interest income to R999 crore from R1,015 crore.

The enhanced stress in many sectors, such as infrastructure, iron and steel and textiles, has impaczted the asset quality of the bank. As a result, gross NPAs moved from R5,824 crore in March 2014 to R6,174 crore in June 2014 (up from 5.89% to 6.26%). Net NPAs moved from R2,985 crore to R3,197 crore (up from 3.12% to 3.37%), the bank said.

Net interest margin (NIM) also came down to 3.02% from 3.29%. The banks total business stood at R2,20,730 crore at end of June 2014 ,comprising total deposits of R1,22,068 crore and advances of R98,662 crore.