SBM reports 40% increase in Q3 net profit at Rs 155 cr

Bangalore-based public sector lender State Bank of Mysore (SBM) has reported a close to 40 per cent rise in net profit at Rs 155 crore for the third quarter ended December 31, 2012 compared to Rs 111 crore in the same period last year.

Its total income for the period went up 13 per cent to Rs 1,616 crore as against Rs 1,428 crore in the third quarter of last fiscal. The operating profit for the third quarter went up 9.5 per cent to Rs 305 crore as against Rs 278.55 crore in the corresponding period last year.

The rise in profits was aided by a modest rise in net interest income and lower provisions during the quarter.

The bank’s net interest income went up 11.57 per cent to Rs 461 crore as against Rs 413 crore in the corresponding quarter. Its provisions were lower during the third quarter at Rs 59 crore as compared to Rs 108 crore in the year ago period.

Its return on assets improved to 0.98 per cent in December 2012 quarter from 0.80 per cent in the year ago period. The net non-performing assets to net advances increased to 1.95 per cent from 1.73 per cent in the year ago period.

The capital adequacy ratio under Basel-II declined to 11.04 per cent from 12.81 per cent in the third quarter ended December 2011.