SBBJ Q3 net profit nosedives 72% to Rs 57.8 cr

The asset quality of the bank slipped further with gross non-performing assets (NPAs) rising to 11.19 percent of gross advances as on December 31, 2016 from 4.22 percent a year ago and 10.50 percent in previous quarter.

Net NPAs hit 8.26 percent of net loans as on December 31, 2016 from 2.20 percent a year ago and 7.17 percent in previous quarter.

Year-on-year, the amount of gross NPAs increased to Rs 7,917.35 crore from Rs 3,079.01 crore. And net NAP amount rose to Rs 5,649.83 crore as against Rs 1,563.96 crore.

The huge jump in bad loans led to provisions and contingencies being raised to Rs 426.91 crore for the quarter from Rs 236.20 crore year earlier.

Of the total provisioning, that of NPAs was at Rs 400.58 crore, against Rs 197.91 crore year ago.

Further, the bank informed its Board of Directors in September approved the scheme of acquisition of it by parent State Bank of India (SBI).

"From quarter ended September 2016, as a pre-merger exercise, the bank had changed its policy for classifying common loans and advances within SBI Group," it added.

"As advised by SBI, the bank has reclassified/realigned and/or made incremental provision in nine such eligible accounts. This has resulted in increase of gross NPAs by Rs 9.62 crore, incremental provision of Rs 53.63 crore, interest reversal of Rs 0.59 crore and its consequential impact on various ratios," SBBJ said.

Also, the bank made a provision of Rs 56.08 crore toward pension during the December quarter of this fiscal.

Shares of the bank closed 2.12 percent down at Rs 681.95 apiece on BSE.