State Bank of Travancore Q3

 

Public sector lender State Bank of Travancore (SBT) posted a 43% drop in net profit at Rs 256 Cr for the nine-month period ended December 31, 2013, this financial year, as against Rs 449 Cr for the same period last year. Total income during the period saw a 15.45% growth at Rs 7,785 Cr, when compared with Rs 6,743 Cr a year ago. NII rose 13.43% to Rs 1,767.76 Cr from Rs 1,558.43 Cr last year. Operating profit increased 6.65% to Rs 1,030 Cr from Rs 965 Cr. The capital to risk weighted assets ratio (CRAR) during the period under review stood at 10.03% under the Basel III framework. The regulatory minimum prescribed by the RBI was at 9%. Gross NPAs increased to 4.41%, as against 3.04% while Net NPAs stood at 2.73%, when compared with 1.83%.

Bank of India Q3

A sharp increase in provisions for bad loans hurt Bank of India’s net profit, which dropped 27% in the third quarter ending December 2013 at Rs. 586 Cr. Provisions or amount set aside for stressed assets, jumped 53% to Rs. 1,404 Cr from Rs. 916 Cr in the corresponding quarter of the last fiscal year. Further, provisions rose as restructured assets worth Rs. 298 Cr had to be declared as non-performing according to the RBI’s classification norm. “Without these provisions, our profit would have been boosted by Rs. 110 Cr,” said VR Iyer, CMD of the bank. Asset quality improved marginally with gross non-performing assets ratio as a percentage of total advances at 2.81% as on December, 2013 from 3.08% as on December, 2012. Net interest income rose 18% and non-interest income increased 17% year-over-year. Total advances grew 25% driven by robust growth in agriculture, corporate and retail portfolio.