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State Bank of Hyderabad (SBH) has posted 44.6 per cent dip in the net profit at Rs 185 crore compared to Rs 334 crore in the corresponding quarter of previous 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, Managing Director, State Bank of Hyderabad told newspersons at a press conference held here on Saturday.
Though RBI has given the flexibility to make the total provisions arising out of Asset Quality Review (AQR) in two quarters during December 2015 & March 2016, the bank has fully provided for the AQR provisions during the current quarter itself, he said.
With 3.17 per cent net interest margin, net interest income grew by 10.8 per cent at Rs 1,203 crore (Rs 1,085 crore) while the provisions and contingencies increased by 50.6 per cent to Rs 669 crore.
The total business went up by 8 per cent to Rs 2,40,881 crore. The advances and deposits growth was at 9 per cent and 7.26 per cent respectively.
“The operating profit has shown an impressive growth of 16.60 per cent year on year and the operating profit for the quarter at Rs 854 cr is also higher than the previous quarters of the current financial year,’’ the Managing Director said.
The gross NPAs decreased from 5.32 per cent to 5.28 per cent.
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