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Spike in NPAs (non-performing assets) led to a 29 per cent dip in net profits for State Bank of Mysore during the fourth quarter of the last fiscal. The bank's net profits shrunk to Rs 116.15 crore from Rs 163.83 crore in the corresponding quarter of 2010-11.
“Decline in net profits for the full year and the fourth quarter of last fiscal was due to a dip in net interest income, which was caused by increase in non-performing assets and consequent dip in interest earned,” Ms Hamsini Menon, Managing Director, State Bank of Mysore, said while announcing the bank's results.
For the fiscal ended March 31, 2012, the bank posted a net profit of Rs 369.15 crore, down 26 per cent from Rs 500.62 crore in the previous fiscal.
According to her, NPAs were seen mainly in the agricultural assets, “as 123 taluks in Karnataka have been declared as drought-hit and due to system-based NPA identification”.
But efforts such as asset-tracking centre and recovery teams helped the bank make cash recoveries of Rs 61 crore during Q4 of last year. For the full year, cash recoveries stood at Rs 204 crore, and upgraded accounts at Rs 145 crore.
Operating profits for the bank has also come down 13.65 per cent, mainly on account of dip in net interest income, higher overheads and staff expenses, said Ms Menon.
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