New Delhi: State Bank of India (SBI) associate State Bank of Mysore (SBM) 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 posted a net profit of Rs.94.07 crore during the corresponding April-June quarter of the previous fiscal.
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. SBM’s gross non-performing asset (NPAs) or bad loans almost doubled at 7.83% of gross advances as of June 2016, from 4.21% 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% of net advances as of June, up from 2.10% 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 the Reserve Bank of India’s (RBI) 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.