State Bank of Bikaner and Jaipur declared its financials for the first quarter, which ended on June 30, 2012. The bank recorded an increase in net profits by 31 percent, standing at Rs. 168 crore as against Rs. 128 crore which it earned in the same period last fiscal.
The net interest income, which is the excess of interest earned over interest expended, also increased by 33 percent, at Rs. 656 crore from Rs. 493 crore earned last year. The bank's income from other sources increased as a result of higher government commission, increasing by 63 percent and being recorded at Rs. 154 crore.
The Managing Director of the bank Mr. Shiva Kumar attributed the rise in net interest margin to improved asset and fund management.
The public sector bank's provision for bad debts increased by 148 percent and was recorded at Rs.208 crore. Its gross NPAs also increased and were reported at Rs. 1874 crore, an increase of 76 percent. The bank's rise in gross NPAs is attributed to bank's exposure to Rajasthan State Electricity Board and to the loans disbursed to farmers.
Talking about the bank's main concern, Mr. Kumar said that asset quality in infrastructure sector will continue to be an area of concern for the bank for the upcoming quarters.