SBI arm SBBJ logs Rs 210 cr loss in Q2

SBI associate State Bank of Bikaner and Jaipur (SBBJ) has reported a loss of Rs 210.10 crore for the September quarter mainly on account of higher non-performing assets (NPAs) due to changes in the group's policy of classifying loans and advances.
The bank had reported net profit of Rs 180.63 crore for the July-September quarter of last fiscal, 2015-16.
SBBJ said it has changed its policy of classifying common loans and advances within SBI group.
"Accordingly the bank has classified the common loans and advances considering the lowest income recognition and asset classification (IRAC) status of the accounts within the SBI Group as a whole.

"This has resulted in increase of gross NPAs by Rs 2,004.12 crore, incremental provision of Rs 511.19 crore, interest reversal of Rs 46.57 crore and its consequential impact on various ratios," it said in a regulatory filing.
The bank classified incremental provision in 45 such eligible accounts, it said.

This the provision and contingencies for July-September 2016-17 rose to Rs 850.01 crore as against Rs 236.71 crore in the year ago period.
Total income of the bank fell slightly to Rs 2,614.21 crore from Rs 2620.34 crore earned in the same quarter of previous fiscal.
Gross non-performing assets (NPAs) of the bank rose to 10.5 per cent of the gross advances as of September 30, 2016 from 4.2 per cent a year ago.

Net NPAs or bad loans were 7.17 per cent of the net advances as of quarter ended September, 2016-17 up from 2.15 per cent year earlier.
Further, SBBJ said the Board of Directors at its meeting held on September 26, 2016 approved the scheme of acquisition of the bank by State Bank of India (SBI).
SBBJ stock closed 0.61 per cent up at Rs 704.05 on BSE.