The State Bank of Mysore reported a 240 per cent rise in net profit in the July-September quarter on higher interest income, lower provisions and better recovery from written-off accounts.

The bank reported a net profit of ₹102 crore for the quarter against ₹30 crore in the corresponding year-ago quarter. Operating profit grew 28 per cent to ₹347 crore.

Net interest income grew by a tenth, while other income was up 26 per cent. Total income rose to ₹1,900 crore from ₹1,687 crore in the year-ago period.

Sharad Sharma, Managing Director, SBM, attributed the bank’s quarterly performance to better recoveries, lower provisions and growth in net interest income.

The bank made a provision of ₹162 crore for non-performing assets (NPAs) against ₹229 crore in the corresponding previous-year quarter. Its net NPAs declined by ₹232 crore to ₹1,424 crore.

The net NPA ratios stood at 2.94 per cent (3.69 per cent). Also, the gross NPA ratio was down at 5.07 per cent, as against 6.56 per cent in the December quarter last year.

The bank saw its retail advances grow 20 per cent, while the credit offtake from corporates was rather muted at one per cent.

Agricultural advances rose 19 per cent to ₹7,639 crore, while the offtake from medium and small enterprises was around 14 per cent. Housing and car loan advances grew 21 per cent and 22 per cent, respectively.

While the bank is aggressively growing its retail business, it is going slow on the corporate advances.

The bank also saw its provision-coverage ratio improve to 63 per cent from 57 per cent in the corresponding previous quarter.

SBM opened about 4.42 lakh accounts under the Pradhan Mantri Jan Dhan Yojana scheme and is targeting some 7.5 lakh accounts.

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