State Bank of Travancore (SBT) reported a net profit of R74.34 crore for the quarter ended December, 2014, even as readies a R485-crore rights issue. The net profit in the third quarter was up by more than 400% from the R14.76 crore registered during the corresponding quarter last year.
“Net profit was propelled by three factors,” SBT MD Jeevandas Narayan told reporters. “One, the reduction in interest costs. Two, the jump in other income, including treasury gains. Three, reduction in the gross NPA level over the previous quarter.”
After a dull patch in the previous year, the third-quarter profit is the highest in the last six financial quarters. The bank’s gross NPA level stood at a reduced level of R3,367 crore during the December quarter against R3,544 crore as at the end of September. Consequently, the gross NPA percentage was also down to 4.91% from 5.11% in the previous quarter. The net NPA level was at 3.06%, compared to 3.2 % in the previous quarter.
SBT’s capital funds stood at R6,018.46 crore at December-end. State Bank of India (SBI), which holds 78.91% shareholding in SBT, had infused R385 crore through a preferential share allotment this year, which helped strengthen the bank’s capital funds.
As a result, the CRAR of the Bank as on December 31, 2014, stood at 10.10% against 10.03% as on December 31, 2013.