The public sector bank had posted a net profit of Rs 330 crore in the year ago period. (Agencies)
This had the public sector bank reporting nearly a four- fold spike in provisions which soared to Rs 1,841 crore, (including Rs 62 crore for restructured assets) as against 492 crore it made during the July-September quarter last year.
Total provision and contingencies during the second quarter was Rs 2,051 crore as against Rs 486 crore in the year-ago period.
"There was an increase in provisioning requirement due to higher non-performing assets. We had a fresh slippage of Rs 2,570 crore in the quarter," bank's Chairman and Managing Director Rajeev Rishi told reporters here.
The gross non-performing assets jumped to 6.47 percent against 5.54 percent in the previous quarter last year. But on the net NPAs front, there was a marginal improvement to 3.77 percent from 3.8 percent in the corresponding quarter last year.
Among the major sectors, bank had Rs 876 crore NPAs from infrastructure, Rs 515 crore from textiles, Rs 456 crore from construction, Rs 451 crore from power generation and Rs 379 crore from aviation.
At the end of the reporting quarter, the bank's restructured loan book stood at Rs 25,598 crore, Rishi said, adding that bank has Rs 2,000 crore loans in the CDR pipeline the current quarter.
Net interest margin of the bank decreased to 2.45 percent in the quarter from 2.68 percent in the year-ago quarter. "For the full year, we expect our NIM to be at 2.45 percent," Rishi said.
Total income rose 9.79 percent to Rs 6,237 crore from Rs 5,681 crore, while total interest income grew 9.97 percent to Rs 5,859 crore from Rs 5,328 crore and non-interest income grew 7.08 percent to Rs 378 crore.
Total business of the bank rose to Rs 4,09,041 crore from Rs 3,57,139 crore, registering a growth of Rs 14.53 percent.
While deposits grew 13.20 percent to Rs 2,30,413 crore from Rs 2,03,538 crore, advances jumped 16.29 percent to Rs 1,78,628 crore from Rs 1,53,601 crore.
Its low-cost Casa books increased 11.04 percent to Rs 74,597 crore from Rs 67,180 crore.
Rishi said bank is likely to get Rs 1,800 crore capital from the government in next few days and is not planning to go to the market for additional capital raising.
The public sector bank had posted a net profit of Rs 330 crore in the year ago period.