SBM net down 35% on higher provisioning in Q4

Provisioning for the quarter jumps 89% y-o-y to Rs 278 cr

State Bank of Mysore (SBM) on Monday reported a 35 per cent decline in net profit at Rs 76 crore in the fourth quarter due to higher provisioning. Provisioning for the quarter was up 89 per cent year-on-year (y-o-y) to Rs 278 crore. For the full year, profit was Rs 416 crore, rising 13 per cent year on year. Net interest income was Rs 468 crore, rising 19 per cent y-o-y. Net interest margin was at 3.22 per cent for the full year, rising six basis points y-o-y.

Its gross non performing assets (NPA) as of March were 4.53 per cent, while net NPA were at 2.69 per cent, which rose year on year 83 basis points and 76 basis points respectively.

“We have seen NPAs rising in agriculture, iron and steel segments,” said Sharad Sharma, managing director, SBM. He however clarified that the bank has no exposure in the troubled mining segment in Karnataka.  “For the last three years, there has been a drought-like situation in Karnataka, which has lead to high agri NPA,” he further said.

SBM is predominantly present in the state of Karnataka.
 
SBM, which has 92.33 per cent shareholding of SBI, will increase public shareholding to 10 per cent according to Securities and Exchange Board of India (Sebi) norms. The bank is looking at the Qualified Institutional Placement (QIP) route to meet the public shareholding norm, said Sharma.