State Bank of Mysore (SBM) reported a 27 per cent rise in March quarter profit at ₹136 crore on higher income. The bank had posted ₹106.81-crore profit in corresponding quarter last fiscal.
Net interest income, the difference between the interest earned and expended, for the quarter grew seven per cent to ₹553 crore (₹517 crore).
For the financial year ended March 2015, SBM reported net profit of ₹409 crore, a growth of 49 per cent over previous financial year’s ₹274.25 crore. Net interest income for the year stood at ₹2,086 crore, a growth of seven per cent over previous year’s ₹1,946 crore.
Following the announcement of results, State Bank of Mysore shares gained 11.38 per cent to end at ₹529.60 on the BSE on Thursday.
SBM said non-interest income grew 34 per cent to ₹768 crore boosted by an increase in recovery in written-off accounts that constituted 27 per cent of the net income. Gross non-performing assets declined to ₹2,136 crore (4 per cent to gross advances) from a high of ₹2,819 crore (5.54 per cent in March 2014). The net NPAs declined to ₹1,122 crore (2.16 per cent to net advances) from ₹1,630 crore (3.29 per cent). The reduction has taken place across all segments and sectors, Sharad Sharma, Managing Director, said in a statement. The provision coverage ratio of the bank improved to 69.3 per cent from 59.5 per cent.
SBM’s total business crossed ₹1,19,300 crore as on March 31, 2015. Deposits increased 7.3 per cent to reach ₹66,064 crore. The retail sector advances increased 16 per cent, while the overall growth was muted at 4 per cent as the bank went slow on corporate advances. The overall year-end advances were up at ₹53,296 crore.
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