State Bank of Bikaner & Jaipur Q3 profit down 29 pc at Rs 152 cr on rising bad loans

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The provisions for bad loans have increased to Rs 133 crore during the quarter as compared to Rs 92 crore in the same period of previous fiscal. Reuters The provisions for bad loans have increased to Rs 133 crore during the quarter as compared to Rs 92 crore in the same period of previous fiscal. Reuters
SummaryState Bank of Bikaner & Jaipur (SSBJ), the largest subsidiary of SBI, today posted 29.3 per cent decline in net profit...

State Bank of Bikaner & Jaipur (SSBJ), the largest subsidiary of SBI, today posted 29.3 per cent decline in net profit at Rs 151.97 crore in the third quarter ended December 2013, due to rise in provisioning.

The bank had a net profit of Rs 215.11 crore in the October-December quarter of 2012-13.

The decline in profit is due to rise in provisions against bad loans and higher provision for salary, State Bank of Bikaner & Jaipur managing director B Sriram said.

The provisions for bad loans have increased to Rs 133 crore during the quarter as compared to Rs 92 crore in the same period of previous fiscal.

The gross non-performing assets of the bank rose to 3.97 per cent from 3.13 per cent in the December quarter of 2012-13 fiscal.

Its net NPAs also rose to 2.44 per cent from 1.88 per cent in the same quarter of 2012-13.

Total income of the bank increased to Rs 2,288.78 crore during the quarter from Rs 2,082.25 crore in the corresponding period a year ago.

Net interest income (NII) during the third quarter increased by 8.72 per cent to Rs 731.57 crore from Rs 672.88 crore in the same period of the previous fiscal.

"We expect business to be around more or less same level during the fourth quarter. NII would continue to increase in fourth quarter," he said.

Capital Adequacy Ratio (CAR) of the bank stood at 11.12 per cent at the end of third quarter.

Net interest margin (NIM) and interest spread have improved to 3.68 per cent and 4.33 per cent in December 2013.

It would continue to be in the same range during the same fourth quarter, he said, when asked if the NIM would be maintained in the coming quarter.

Shares of State Bank of Bikaner & Jaipur closed at Rs 298.55, up 0.5 per cent over previous close on the BSE.

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