Gross NPAs lowest in four quarters: State Bank of Mysore

A: My quarter-on-quarter (QoQ) profit has gone up by 13 percent and that has been been helped by the fact that the operating profit went up by 16 percent, which was helped by net interest income growth: 9 percent year-on-year (YoY). We have a healthy other income growth of 30 percent.

The other part is that our provisions have been lower though the tax provision is higher because of higher profitability. The non performing assets (NPA) provisions are lower because there has been a distinct deceleration that we have seen over the last three-four quarters. It has been the lowest in this period resulting in reduced provision on NPAs. Our gross NPA has accordingly come off from a high of 6.6 percent in December 2013 as declined to 5.1 percent in December 2014.

Ekta: If you could apprise us of the internals this time for example the fresh slippages, fresh restructuring as well as the net interest margins recorded this quarter?

A: The net interest margin is fairly decent at 2.95 percent. It slipped about 4 basis point over the previous quarter but we expect to close the year at around 3 percent. We normally fluctuate between 3-3.1 percent so this year, we will close at 3.0 percent against 2.9 percent in the December quarter.