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State Bank of Bikaner and Jaipur (SBBJ) reported a 31 per cent growth in net profit at Rs 168 crore in the April-June period on the back of higher interest income and other income.
The State Bank of India associate reported a net profit of Rs 128 crore in the year ago period.
Net interest income (difference between interest earned and interest expended) rose by 33 per cent to Rs 656 crore from Rs 493 crore.
Other income jumped by 63 per cent to Rs 154 crore (Rs 94 crore) due to higher government commission.
According to Mr Shiva Kumar, Managing Director, better management of assets and funds helped the bank increase the net interest margin.
NPAs and Restructuring
Provisions towards bad loans jumped by 148 per cent to Rs 208 crore (Rs 84 crore).
Gross non-performing assets rose by 76 per cent to Rs 1,874 crore (Rs 1,062 crore). The increase in NPAs is mainly on account of the bank’s exposure to Rajasthan State Electricity Board (Rs 1,200 crore) and agriculture loans (about Rs 600 crore).
Mr Shiva Kumar said if the RBI’s draft guidelines on restructuring were to be implemented then there could be an impact on the bank in terms of the provisions that will need to be made.
“Infrastructure sector will remain an area of concern in the asset quality in the coming quarters,” Mr Kumar said.
The shares of the bank ended at Rs 372.65 on Tuesday on the BSE, higher by 1.15 per cent.
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