State Bank of Bikaner and Jaipur net up 31%

State Bank of Bikaner and Jaipur (SBBJ) has reported a net profit of Rs168 crore for the quarter ended June, a 31 per cent rise over the year-ago period, owing to healthy growth in core and non-interest incomes.

During the quarter, the bank reported other income of Rs154 crore, a rise of 63 per cent compared to the corresponding period of the previous year. Profit on foreign exchange stood at Rs14 crore.

Net interest income, or the difference between interest earned and interest expended, rose 33 per cent to Rs656 crore. The bank’s net interest margin stood at 3.9 per cent, a rise of 48 basis points against the year-ago period. Gross and net non-performing assets (NPAs) stood at 3.71 per cent and 2.31 per cent, respectively. On a sequential basis, gross NPS rose 41 basis points, while net NPAs increased 40 basis points.

“The addition in NPAs was primarily on account of two major accounts worth Rs270 crore turning bad in the quarter,” said Managing Director Shiva Kumar. Provisioning for NPAs soared 148.72 per cent to Rs208 crore. At the end of the quarter, the bank’s capital adequacy ratio was 13.21 per cent.

During the quarter, the bank had opened a branch for nigh net worth individuals in Jaipur — the Kohinoor Royale. Shiva Kumar said this was the second specialised branch for high net worth individuals in the country, after parent State Bank of India’s branch in Hyderabad.