SBM

The Bank reported a very good set of numbers for Q2FY16, thanks to lower provisioning and improvement in asset quality. Net profit for the quarter showed a 30% (YoY) jump at Rs.132 crore. Net interest income, the difference between interest earned and expended, grew 2.5% at Rs.526 crore. Provisioning was lower at Rs.116 crore, down from Rs.216 crore in previous Q2. And its provision coverage ratio to gross NPAs stood at 71.54% v/s 71.52% (QoQ).

In terms of asset quality, it has improved on the Gross NPA front which fell marginally from 4.21% to 4.19% (QoQ) while Net NPA rose to 2.22% from 2.10%. RoA improved sharply from 0.47% to 0.65%. CAR as per Basel III  was at 11.29% v/s 11.22% (QoQ).  42% of its income comes from wholesale or corporate banking while retail is at around 40%. Treasury operations contribute 17-18%.