SBM net drops 22.6% in Q3

Despite a 55.44 per cent rise in its net interest income, the Bangalore-based State Bank of Mysore (SBM), an associate bank of SBI, has posted a 22.6 per cent drop in its net profit to Rs 141.31 crore for the third quarter ended December 31, 2009 compared to the corresponding quarter last year. Its total income for the quarter stood at Rs 995.07 crore, a marginal drop of 5.3 per cent compared to the same quarter a year ago.

The bank’s operating profit rose by 12 per cent to Rs 266.60 crore during the quarter compared to the year ago period. The bank’s net interest income stood at Rs 346.6 crore during the third quarter. Its other income took a hit and dropped by 45.5 per cent to Rs 94.4 crore. The bank made a provision of Rs 56 crore as against a write back of Rs 26.8 crore in the corresponding quarter last year.

Earnings per share was at Rs 89.48 as on December 2009 and Return on Assets annualised was 1.04 per cent.

Non-performing assets are at Rs 535.44 crore. Gross NPA Ratio stands at 1.92 per cent. The net NPA ratio stands at 0.89 per cent as on December 2009. The Capital to Risk-adjusted Ratio (CRAR) of the Bank was at 12.92 per cent (under BASEL II framework) as against a minimum of 9 per cent, stipulated by the Reserve Bank of India.