State Bank of Bikaner and Jaipur's (SBBJ) third quarter net profit increased 7.5 percent year-on-year to Rs 163.4 crore, supported by other income. However, the slow growth in net interest income and higher provisions restricted growth in bottomline.
State Bank of Bikaner and Jaipur 's (SBBJ) third quarter net profit increased 7.5 percent year-on-year to Rs 163.4 crore, supported by other income. However, the slow growth in net interest income and higher provisions restricted growth in bottomline. Net interest income grew 2.2 percent to Rs 747.6 crore in October-December quarter from Rs 731.6 crore in same quarter last fiscal.
Net interest income is the difference between interest earned and interest expended. Other income (non-interest income) during the same period increased 14.5 percent to Rs 193.29 crore on yearly basis. Provisions for bad loans jumped 45.5 percent year-on-year (up 19.8 percent sequentially) to Rs 244.5 crore during the quarter with the provision coverage ratio at 58.57 percent as on December 2014.
Asset quality was weakened in December quarter as gross non-performing assets (NPA) rose 41 basis points Y-o-Y (up 14 bps Q-o-Q) to 4.38 percent and net NPA climbed 20 bps year-on-year (up 15 bps quarter-on-quarter) to 2.64 percent. Capital adequacy ratio (as per Basel III norms) declined to 10.48 percent during the quarter compared to 11.05 percent in previous quarter and 11.12 percent in the year-ago period.
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