Half Yearly Results of State Bank of Mysore

The Operating Profit for the period was at Rs.624.65 crores registering an increase of 21% y-o-y. The Operating Profit was buoyed by an increase of 17% y-o-y in the Net Interest Income and an increase of 12% in other income which was supported mainly by increased treasury profits. Provisions (other than tax) for the period declined by Rs.38 crores (10%) to  Rs.347 crores.  As a consequence of the increase in operating profit and other income & decline in provision, Profit before Tax increased y-o-y by 146% to Rs.325 crores. The Net Profit for the HY ended 30th Sept.2012 was at Rs.185.14 crores registering a y-o-y growth of 30%. Net Interest Margin was at 3.31%, up from 3.20% recorded in Q1-FY13.

The gross NPAs as on 30.09.2012, declined by Rs.106 crores from Rs.1886 crores as on 30.06.2012 to Rs.1780 crores as on 30.09.2012. The GNPA ratio consequently declined from 4.67% to 4.33%. The Bank has effected cash recoveries and up-gradations across all business segments aggregating Rs.285 crores during the current quarter. The net NPA ratio also declined by 51 basis points from 2.43% to 1.92% during the quarter. The provision coverage ratio as at 30th Sept.2012 improved to 69% from 63% as on 30.06.2012 and 65% as on 31.03.2012

Quarter to quarter, net Interest Income during Q2-FY13 was at Rs.472 crores which was 8% over the corresponding levels of Q1-FY13. Operating Profit (before provisions and contingencies) during the quarter at Rs.327 crores recorded an increase of 10% over the previous quarter. Net Profit for Q2 increased significantly from Rs.40 crores  to  Rs.145 crores.

Provisions, other than tax, during the quarter declined from Rs.241 crores to Rs.115 crores, a reduction of 52% over the previous quarter. While provisions for NPAs are lower at Rs.84 crores against Rs.197 crores during Q1-FY13, other provisions declined by Rs.30 crores.

Tax expenses were significantly higher at Rs.114 crores q-o-q on account of higher operating profit and lower loan loss provisions. Return on Assets during Q2-FY13 was at 0.96%. The Capital Adequacy Ratio as on 30th Sept.2012 was 11.84%.