1. SBH net falls 43 per cent to Rs 253 cr

SBH net falls 43 per cent to Rs 253 cr

State Bank of Hyderabad (SBH) has reported a 43.18% decline in its net profit at Rs 253 crore for the quarter ended March, compared with Rs 446 crore in the corresponding quarter last year.

By: | Hyderabad | Updated: May 2, 2016 6:56 AM

State Bank of Hyderabad (SBH) has reported a 43.18% decline in its net profit at Rs 253 crore for the quarter ended March, compared with Rs 446 crore in the corresponding quarter last year.

Total income fell by 5.7% to Rs 3,907 crore from Rs 4,146 crore due to higher provisioning for non-performing assets (NPAs).

Santanu Mukherjee, managing director, said the bank allocated Rs 664.34 crore towards contingencies and provisioning, against Rs 431.17 crore in the same quarter of the previous fiscal.

He said adequate provisionings suggested by the Reserve Bank in respect of stressed accounts identified under early recognition process have been made by the bank. In addition to these, additional provisioning has also been made to take care of future requirements of other assets under stress even while there were additional slippages to the extent of Rs 3,000 crore in the March quarter.

For the full year, the bank posted a 19.15% decline in its net profit to Rs 1,064.93 crore, against Rs 1,317.13 crore during 2014-15. Total income grew by 3.19% at Rs 15,632.78 crore, compared with Rs 15,148 crore in the previous financial year.

Other incomes grew 9%, from Rs 1,325 crore to Rs 1,446 crore. Gross NPAs stood at R6,591 crore while the net NPAs were at R3,743 crore, 3.37%. The capital adequacy ratio improved by 36 bps to 11.62%.

Mukherjee said total business of the bank stood at Rs 2,54,599 crore and advances grew by 5.20% to Rs 1,14,369 crore. Total deposits increased 6.22% to Rs 1,40,230 crore. For the current financial year, the bank has set a target of 20-25% growth in its net profit.

“We expect a 12-13% growth in advances and 17-18% increase in deposits,” Mukherjee said. “The slippages for this quarter was about Rs 3,067 crore. We hope that the NPAs will come down next year, especially the new slippages, if the market economics change. With adequate provisioning, we hope the NIM to be at 3.25%”.

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