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Despite higher provisioning towards bad loans, State Bank of Travancore (SBT) reported a 23 per cent increase in net profit at ₹91 crore in the third quarter ended December 31, 2015, against ₹74 crore in the year-ago period.
Lower employee costs and tax expense helped support SBT’s profit growth.
Net interest income (the difference between interest earned and interest expended) nudged up 4.54 per cent, year-on-year (y-o-y), to ₹621 crore (₹594 crore in the year-ago quarter). Other income was a shade lower at ₹246 crore (₹250 crore). Employee costs in the reporting quarter were lower at ₹241 crore (₹319 crore). Tax expense was also lower at ₹2.87 crore (₹49.39 crore).
Provisions towards bad loans were higher at ₹293.51 crore (₹221.41 crore).
Gross non-performing assets (NPAs) as a percentage of gross advances came down to 3.87 per cent from 4.91 per cent in the year-ago period. Net NPAs as a percentage of net advances came down to 2.46 per cent from 3.03 per cent.
Shares of SBT closed at ₹394.65 apiece, down 0.34 per cent over the previous close on the BSE.
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