SBBJ Q4 net profit down 31% as pro­vi­sion­ing grows

The Financial Express - - MONEY & MARKETS -

New Delhi, April 29: SBI as­so­ciate State Bank of Bikaner & Jaipur on Fri­day re ported a 31% de­cline in its net profit at Rs 193.22 crore for March quar­ter on higher pro­vi­sion­ing for bad loans. Be­sides, a higher outgo to­wards pen­sion and wages too af fected prof­itabil­ity.

The bank's net profit in the year-ago pe­riod stood at Rs 280.25 crore.

To­tal in­come dur­ing Jan­uary-March in­creased to Rs 2,709.36 crore as against Rs 2,634.66 crore in the same pe­riod a year ago, it said in a reg­u­la­tory fil­ing.

On as­set qual­ity, the gross non-per­form­ing as­sets (NPAs) or bad loans were 4.82% of the gross ad­vances as of March, slightly up from 4.14% a year ago. Net NPAs were 2.75% of net ad­vances for the quar­ter as against 2.54%.

How­ever, the bank had to park aside a sum of Rs 323.65 crore to­wards bad loans and pro­vi­sion­ing as against Rs 221.01 crore a year ago.

Dur­ing the quar­ter, the bank pro­vided an amount of Rs 70 crore (Rs 115.50 crore dur­ing FY16) to­wards pen­sion and Rs 20 crore (Rs 95.92 crore dur­ing FY16) to­wards gra­tu­ity, it said.

“The bank dur­ing the year paid Rs 217.06 crore on ac­count of wage ar­rear re­lat- ing to the pe­riod from Novem­ber 2012 to March 2015 out of pro­vi­sion of Rs 264.40 crore made in ear­lier years un­der pro­vi­sions and con­tin­gen­cies,” it said.

The ex­cess pro­vi­sion of Rs 47.34 crore has been re­versed to em­ployee cost, the bank added. The board of di­rec­tors at its meet­ing held on Fri­day de­clared a div­i­dend of Rs 14.30 per share for 2015-16. PTI

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