SBBJ Q3 net profit nosedives 72% to Rs 57.8 cr

The asset quality of the bank slipped further with gross NPAs rising to 11.19% of gross advances

SBI associate State Bank of Bikaner & Jaipur's net profit fell sharply by 72% to Rs 57.84 crore in the quarter ended December 31, on mounting bad loans and fall in core income.

The bank's net profit in October-December quarter of previous fiscal stood at Rs 206.13, State Bank of Bikaner & Jaipur (SBBJ) said in a BSE filing on Friday.

"Total income of the bank rose marginally to Rs 2,645.82 crore during the quarter under review as against Rs 2,636.56 crore earned in the same period year ago," according to the filing.

The bank further said, interest income, its main source of profit, fell to Rs 2,262.28 crore during the October-December period from Rs 2,408.22 crore in the year-ago period.

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

Net NPAs hit 8.26% of net loans as on December 31, 2016, from 2.2% a year ago and 7.17% 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.

The total provisioning for NPAs was at Rs 400.58 crore against Rs 197.91 crore year ago.

"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 towards pension during the December quarter of this fiscal.

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