Public sector
State Bank of Travancore (SBT) has reported a net loss of Rs 742.89 crore for the June quarter due to higher NPAs.
Its net profit during the corresponding quarter in last financial year stood at Rs 81.32 crore, the bank said in a statement.
On account of higher provisions of Rs 1,170 crore for
NPA (Non-Performing Assets) and additional prudential provisionsor other stressed accounts, the bank has faced losses.
The Gross NPA stood at 9.38 per cent, while Net NPA was 5.99 per cent as onJune 2016, it said.
The bank, however, has recorded an operating profit of Rs 426.65 crore during the quarter under review.
SBT — one of the Kerala based-banks — is proposed to be merged with State Bank of India (SBI).
The Kerala Assembly had recently passed a resolution asking the Centre and RBI to
revoke the decision for merger. Staff Unions of SBT had also protested
against the merger. Both ruling CPI(M)-led LDF and Congress headed UDF
had supported the resolution.
The other income also grew by around 35 per cent to Rs 351.37 crore
during the three-month period as against Rs 260.72 crore in June quarter
of the preceding financial year, on the back of robust growth of 142
per cent growth in profit from treasury operations.