State Bank of Hyderabad (SBH) has posted a 63% drop in net profit at R119 crore during the third quarter, as against a net profit of R332 crore in the corresponding period last fiscal.
Staff expenditure rose 46.59% to R424 crore, compared to R290 crore for the same period last fiscal, affecting the net profit.
?The general economic slowdown and situation in the state impacted the business and industry, which in turn affected the asset quality of the bank. As a result, the gross non performing assets (NPAs) moved from R3,186 crore in March to R5,589 in December, the ratio increasing from 3.46% to 5.77%,? the bank said. Net NPAs moved from R1,449 crore to R3,013 crore, the ratio increasing from 1.61% to 3.21%, during the same period. The net interest income (NII) was up 1.28% to R989 crore, as against R976 crore last year.
The bank?s total advances increased by R4,784 crore to reach R96,955 crore, while deposits grew by R3,972 crore at R122,211 crore. The total business stood at R219,166 crore as at the end of December 2013. The bank?s credit deposit ratio increased to 79.13% in December 2013, up from 76.83% in December 2012, the release said.
For the nine-month period, SBH earned a total interest income of R10,015 crore, which improved by 8.62% over R9,220 crore in the corresponding quarter of the previous fiscal. Interest expenses increased by 12.07% to R7,067 crore from R6,306 crore.
The bank?s operating expenses at R1,779 crore increased by 19.16% over R1,493 crore. Similarly, there was an increase in staff expenses by 22.77% to R1,186 crore from R966 crore due to provisioning for wage revision. Non interest income increased to R654 crore from R652 crore.
