State Bank of Mysore posts Rs 472 crore loss in Q1 on bad loans

The bank had posted a net profit of Rs 94.07 crore during the corresponding quarter of the previous financial year

SBI associate State Bank of Mysore slipped into losses at Rs 471.88 crore in the first quarter on mounting bad loans, resulting into over sevenfold jump in provisions.

The bank had posted a net profit of Rs 94.07 crore during the corresponding April-June quarter of the previous financial year.

Provision for bad loans zoomed to Rs 1,037.78 crore, more than 7.8 times from Rs 131.89 crore parked aside a year ago, showed the bank's balance sheet filed with BSE.

Total income increased marginally to Rs 1,987.63 crore during the June quarter from Rs 1,951.65 crore a year ago.

Bank's gross non-performing asset (NPAs) or bad loans almost doubled at 7.83 per cent of gross advances as of June 2016, from 4.21 per cent at the end of June 2015.

In absolute terms, the gross NPAs surged to Rs 4,323.14 crore from Rs 2,213.62 crore.

Similarly, net NPAs also jumped to 4.65 per cent of net advances as of June, up from 2.10 per cent a year ago. In volume terms, net NPAs were Rs 2,479.93 crore as against Rs 1,076.56 crore.

Classification of stressed assets under RBI's asset quality review (AQR) guidelines has been eating into most of public sector lender as they have to keep a higher reserves to against non-performing loans.

State Bank of Mysore shares were trading at Rs 649.90, down 1.26 per cent in afternoon session on BSE.