State Bank of Hyderabad reports a net loss of Rs 776 crore in Q2

Signaling a steep deterioration of its financial performance, State Bank of Hyderabad (SBH) has reported a net loss of Rs 776.64 for the quarter ended September 2016 as compared to a net profit of Rs 375.31 crore it had reported in the corresponding quarter previous year.

This is the biggest ever net loss reported in a single quarter by the bank in recent history. The SBH is the largest among all the associate banks of State Bank of India(SBI).

SBH managing director Santanu Mukherjee said the higher loan loss provisioning of Rs 2,258 crore was resulted in a net loss for the quarter even though the bank's operating profit stood at Rs 1,101 crore.

The bank had achieved a net profit of Rs 251 crore even in the last quarter(April-June, 2016).

The bank did not elaborate on why there was a sudden surge in NPAs in the quarter under review.

The meeting of the board of directors of the bank was held on Friday and was presided over by SBI chairman Arundhati Bhattacharya, according to a statement issued by the bank.