SBH net down 63% in Q3 on higher employee cost
Hyderabad: State Bank of Hyderabad (SBH) today reported 63 per cent decline in net profit for the quarter ended December 2013 to Rs 119 crore due to high employee cost.
The bank had reported a net profit of Rs 322 crore in the same quarter last fiscal.
The bank’s net interest income grew 1.28 per cent during the quarter under review to Rs 989 crore as against Rs 976 crore in the October-December quarter in FY13, SBH said in a statement.
Employee expenditure stood at Rs 424 crore in the third quarter as against Rs 290 crore in the corresponding quarter last year.
“The general economic slowdown and situation in the state impacted the business and industry which in turn affected asset quality of the bank.”
“As a result, gross NPAs moved from Rs 3,186 crore in March 2013 to Rs 5,589 crore in December 2013. Net NPAs moved from Rs 1,449 crore to Rs 3,013 crore during the same period”, SBH said in a statement.
The bank’s total deposits increased by Rs 3,972 crore to reach Rs 1,22,211 crore. Advances grew by Rs 4,784 crore to touch Rs 96,955 crore.
The bank’s total business stood at Rs 2,19,166 crore at the end of December 2013, it added.