The net profit of State Bank of Mysore dropped by 17%

By | September 11, 2011

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.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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