State Bank of Mysore at new low

State Bank of Mysore hit a new 52-week low today at Rs.384 and it remains firmly in the red, down almost 5%.

The Bank posted a dismal set of numbers for Q3FY16. Its net profit for the quarter dipped 72% (YoY) at Rs.27 crore, mainly on account of higher provisioning and increased outgo on employee cost.

Its provisioning for the quarter was at Rs.254 crore, up 199% sequentially and and up 87% (YoY). Employee cost rose 8%.

In terms of asset quality, Gross NPA rose from 4.19% to 5.48% and Net NPA too soared from 2.22% to 3.12%. This deterioration in asset quality was also a dampener along with fall in profitability. The bank said during nine months ended December, it paidm Rs 166.72 crore on account of wage arrears related to November 2012 to March 2015 period. It also provided Rs.12.88 crore against unhedged foreign currency exposure as on December 2015.

Its Return on assets declined to 0.13% from 0.51% in Q3 last year. The capital adequacy ratio under Basel-III improved to 12.36% from 11.65% a year ago.