A recent press report said that the State Bank of Mysore has reported a fall in its net profit for the second quarter ended September, 2011. The net profit of the bank fell by 17 per cent to Rs.77.78 crore against Rs.93.36 crore during the same period last year.
Mr. Dilip Mavinkurve, Managing Director of State Bank of Mysore told that high provisions led to the fall in net profit of the bank. The nonperforming assets (NPAs) to about Rs.400 crore were added during this quarter.
The gross NPAs which were 3.12 per cent last year has been increased to 3.72 per cent and the net NPAs which were 1.48 per cent increased to 1.82 per cent. Mr. Mavinkurve said that the bank had made recoveries to about Rs. 100 crore during the second quarter and it would work on them in the third quarter.
He also said that the net interest margins (NIMs) of the bank was under pressure due to the increase in NPAs as it led to the reversal of interest. The high cost of deposits also affected the net interest margins which were 3.16 per cent. The bank would maintain the current level in the months ahead.
The banks retail loan basket includes home loans, personal loans, auto loans, gold loan, education loan etc.