State Bank Of Bikaner & Jaipur- NPAs On Rise In March 2014 Quarter
DSIJ Intelligence / 23 Apr 2014
State Bank of Bikaner & Jaipur announced its March 2014 quarter results and FY14 results. Higher slippages in textile sector have resulted in higher NPAs for the quarter.
State Bank of Bikaner & Jaipur announced its March 2014 quarter results and FY14 results. The results have been in-line with the street estimates where the Net interest income of the bank stood at Rs 741 crore as against Rs 731 crore in December 2013 and Rs 557 crore in March 2013. The other income for the quarter stood at Rs 336 crore as against Rs 169 core in December 2013 and Rs 277 crore in March 2013. With the provisions standing at Rs 243 crore as against Rs 168 crore in December 2013 and Rs 168 crore in March 2013 the net profit for the March 2014 quarter stood at Rs 238 crore against Rs 152 crore in December 2013 and Rs 178 crore in March 2013.
If we consider the other parameters for the quarter ended March 2014, there has been some amount of disappointment on the operational front as the Non performing assets (NPA) for the quarter increased significantly.
For the quarter ended March 2014, the Gross NPAs stood at Rs 2733 crore as against Rs 2413 core in December 2013. Even the Net NPAs increased to Rs 1771 crore against Rs 1457 crore in December 2013. If we consider the same in the per cent terms, the Gross NPAs stood at 4.18 % and net NPAs stood at 2.76% as against 3.97% and 2.44% respectively for December 2013.
Some amount of stability was witnessed on the net interest margins (NIMs) as the NIM for the March quarter stood at 3.65% as against 3.68% in December 2013. The NIMs sustained on account of higher CASA ratio. The low cost CASA deposits actually helped the bank put in better performance on the NIM front. To put the figures in perspective, CASA ratio for the quarter stood at as high as 39.51% (33.92% Current account and 5.59% saving account). Apart from that, the bank has also reduced the CD & Bulk Deposits in March 2014 to just 12.79% from the levels of 18.27% in March 2013. Even the high cost deposits for the March 2014 quarter have been reduced to 8.76% from the levels of 13.87 % in March 2013.
If we take a look at the industry wise exposure, the highest has been to the infrastructure to the tune of Rs 11807.18 crore (14.12%of total advances). It is followed by iron & steel Rs 5769.46 crore (6.9%) and Textile Rs 4604.69 crore (5.51%).
As for the NPA, the C&I segment has been the worst performer as the NPAs for the segment stood at Rs 1534 crore (up from Rs 859 crore in March 2013). If we look at the worst sector in the NPAs, it is the Textile which has witnessed higher slippage. However, the management has stated that it is the one account of Textile Company which has resulted in the higher slippage. The management however is confident of betterment in the H1FY15 on the NPA Front.
We recommend the readers to hold the counter with a long term perspective.
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