State Bank of Hyderabad Q2 net rises 21% to Rs 375 cr

State Bank of Hyderabad today said its net profit for the second quarter of current fiscal rose by 21 per cent to Rs 375.31 crore, as a portion of bad loans were sold to ARCs.
The associate bank of SBI had registered a net profit of Rs 310.52 crore in the corresponding quarter of previous fiscal.
Total income of the bank also increased to Rs 3,945.48 crore as of September 30, 2015 as against Rs 3,675.24 crore earned in the same period year ago, the bank said in a filing on the BSE.
The provisioning for bad loans and contingencies were reduced to Rs 242.70 crore in the ensuing quarter from Rs 312.06 crore a year ago.

On account of selling Rs 436.64 crore of non-performing assets (NPAs) during the quarter under review, the bank trimmed its gross bad loans as a percentage of gross loans to 4.92 per cent from 5.73 per cent a year ago, it said.
Net NPAs were brought down to 2.39 of net advances from 2.87 per cent a year earlier, the bank said.

For the half year ended September, bad loans sold to the Asset Reconstruction Companies (ARCs) stood at Rs 560.44 crore.
"The deficit of Rs 366.70 crore up to 30th September 2015 (Rs 130.20 crore for the half year ended on that date) is being written off in eight quarters in equal proportions from the quarter in which the assets have been sold," it said.

The amount written off for 2014-15 was Rs 42.08 crore and the amount written off for the quarter ended September 30, 2015 is Rs 45.84 crore (Rs 75.53 crore for the half year ended on that date).
The associate bank of SBI said that the balance of Rs 249.09 crore is carried forward to be written off.