State Bank of Hyderabad (SBH) has posted a 44.6% decline in its net profit to Rs 185 crore for the December quarter, against Rs 334 crore in the corresponding quarter last year.
“The net profit has come down on account of higher provisions made as part of implementation of early recognition of non-performing assets as suggested by the Reserve Bank of India (RBI),’’ Santanu Mukherjee, MD, said.
Though the RBI has given the flexibility to make total provisions arising out of asset quality review (AQR) in two quarters in December 15 and March 16, the bank has fully provided for the AQR provisions during the current quarter itself.
The total business stood at Rs 2,40,881 crore, an increase of 8.07%. Total advances grew 9.04% to 1,10,571 crore and deposits increased by 7.26% to Rs 1,30,310 crore. Income from investments rose by 5.26% to Rs 688 crore during the quarter, against R653.84 crore in the year-ago period.
Total income from interest stood at Rs 3,950 crore during the quarter under review against Rs 3,945 crore in the corresponding period of the previous year.
With 3.17% net interest margin, net interest income grew by 10.8% to Rs 1,203 crore. Provisions and contingencies increased by 50.6% to Rs 669 crore.