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State Bank of Hyderabad (SBH) posted a 63 per cent drop in net profit at Rs 119 crore during the third quarter (Sept-Dec) of the current financial year, as against a net of Rs 332 crore in the corresponding period last financial year.
Staff expenditure during the quarter rose 46.59 per cent to Rs 424 crore, when compared with Rs 290 crore for the same period last fiscal impacting its net profit.
Net interest income (NII) was up just 1.28 per cent to Rs 989 crore as against Rs 976 crore last year.
The general economic slowdown and situation in the state (Andhra Pradesh) impacted the business and industry, which in turn affected the asset quality of the bank, SBH said in a statement here on Saturday.
Due to these factors, gross non-performing assets (NPAs) moved to Rs 5,589 crore in December 2013 from Rs 3,186 crore in March last year. Net NPAs too piled up to Rs 3,013 in December last year, as against Rs 1,449 crore in March last. Net NPA ratio was higher at 3.21 per cent from 1.61 per cent.
SBH's total advances increased by Rs 4,784 crore to reach Rs 96,955 crore, while deposits grew by Rs 3,972 crore at Rs 122,211 crore. The total business stood at Rs 219,166 crore as at the end of December 2013.
The bank's credit deposit ratio increased to 79.13 per cent in December 2013, up from 76.83 per cent in December 2012, it stated in the release.
