SBBJ Q1 net profit up 31% at Rs 168 cr

Jaipur-based State Bank of Bikaner and Jaipur (SBBJ) reported a 31% year-on-year spurt in its fourth quarter (April-June) net profit at Rs 168 crore, boosted by robust growth in other income and net interest income (NII) or the difference between interest earned and paid out.

While other income component surged 63% to Rs 154 crore, NII increased more than 33% y-o-y to Rs 656 crore.

According to Shiva Kumar, managing director, SBBJ, it was the second consecutive quarter that the bank recorded a net profit in excess of 30%. The net profit was up by 32% in Jan-March quarter. Better management of assets and funds attributed to the growth in NII.

Its loan book ramped by nearly 21% to about Rs 48,800 crore. Net interest margin (NIM) rose to 3.90% as against 3.42% in Q1, FY12. Yield on advances rose from 11.51% to 12.11% quarter-on-quarter. Meanwhile, the cost of funds rose too from 6.95% to 7.12%.

At the same time, the expansion in loans led to increase in provisions. The gross non-performing asset ratio rose to 3.71% (at about Rs 1,870 crore) as compared with 3.30% in Q4, FY12. The net NPA ratio too increased from 1.92% to 2.31% at Rs 1150 crore during the same period.

Consequently, NPA provisions shot up more than two times from Rs 84 crore to Rs 208 crore y-o-y basis. Banks are required to provide 2% for standard assets while the provisioning requirement may go up to 100% in case of any asset, treated as bad debt.

saikat.das@network18online.com