SBI associate State Bank of Bikaner & Jaipur today reported a decline of 31 per cent in net profit at Rs 193.22 crore for March quarter on higher provisioning for bad loans.
Besides, a higher outgo towards pension and wages too affected the profitability.
The bank’s net profit in the corresponding January-March period of 2014-15 stood at Rs 280.25 crore.
The total income during January-March increased to Rs 2,709.36 crore as against Rs 2,634.66 crore in the same period a year ago, it said in a regulatory filing.
On asset quality, the gross non-performing assets (NPAs) or bad loans were 4.82 per cent of the gross advances as of March, slightly up from 4.14 per cent a year ago.
Net NPAs were 2.75 per cent of net advances for the quarter as against 2.54 per cent.
However, the bank had to park aside a sum of Rs 323.65 crore towards bad loans and provisioning as against Rs 221.01 crore a year ago.
During the quarter, the bank provided an amount of Rs 70 crore (Rs 115.50 crore during FY16) towards pension and Rs 20 crore (Rs 95.92 crore during FY16) towards gratuity, it said.
“The bank during the year paid Rs 217.06 crore on account of wage arrear relating to the period from November 2012 to March 2015 out of provision of Rs 264.40 crore made in earlier years under provisions and contingencies,” it said.
The excess provision of Rs 47.34 crore has been reversed to employee cost, the bank added.
The bank said the board of directors at its meeting held today declared a dividend of Rs 14.30 per share for fiscal 2015-16.
The scrip of SBBJ was trading 3.04 per cent lower at Rs 520 in the pre-close session on BSE.