SBBJ net falls 28% on higher provisioning

Bank's net interest income dips by 10.34% to Rs 557 cr

Hit by higher provisioning for bad loans, State Bank of Bikaner and Jaipur (SBBJ), the largest subsidiary of SBI, today posted 28 per cent decline in net profit at Rs 178 crore for the fourth quarter ended March 31.

The bank had a net profit of Rs 247 crore in the same quarter a year ago. The decline in profit in the last quarter is due to higher provisions, Managing Director B Sriram said. Net interest income decreased 10.34 per cent to Rs 557.25 crore compared with Rs 621.51 crore in the same period a year ago.

Total income increased to Rs 2,127.67 crore from Rs 1,996.79 crore in the same period a year ago. The bank has proposed a dividend of 161 per cent or Rs 16.10 per share for 2012-2013.

Net interest margin (NIM) declined to 3.62 per cent against 3.70 per cent in the previous financial year. Asked about NIM outlook, Sriram said the bank would aim at 3.5 per cent in 2013-14. He said, "It may be difficult to increase margins because the rates are on the way downwards."

For the entire financial year-ended March 31, net profit increased 12 per cent to Rs 730.24 crore from Rs 652.03 crore in the previous financial year.

At the same time, total income improved to Rs 8,224.47 crore from Rs 6,890.33 crore in 2011-12. Total business as on March 31, stood at Rs 1.31 lakh crore, an increase of 17 per cent from the previous financial year-end.