NEWS & ADVICE : FIXED DEPOSITS
State Bank of Hyderabad slumps own by 21% in Jan-March quarter
By Neelima Shankar
May 9, 2013
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State Bank of Hyderabad- a subsidiary of State Bank of India has posted a decline in net profit by 21 per cent at Rs 379 crore in the fourth quarter which ended on March 31, 2013 as compared to Rs 481 crore in the same period last year.

For the entire financial year 2012-13, net profit declined by 3.70 per cent at Rs 1250 crore against Rs 1298 crore for the previous financial year. Total business grew by 16.9 per cent to Rs 2, 10,532 crore.

Provisioning also increased by 16.4-per cent in the net interest income at Rs 3,918 crore, Mr. M. Bhagavantha Rao, Managing Director of SBH said.

"We took a calculated decision to have lower profit but a healthy balance sheet with higher provision coverage ratio that is what has been prescribed by the Reserve Bank of India," Mr. Rao said.

The net interest margin (NIM) was almost flat and stood at 3.48 per cent against 3.47 per cent of previous year.

The net non-performing assets increased to 1.61 per cent from 1.30 per cent last year.

The NPAs were high in the commercial/corporate segment, accounting for 73 per cent of total NPAs in FY2013.

The stress was noticed in sectors such as roads, food processing, textiles, metal, paper and plastics. In the current financial year, SBH would target on lending to retail, micro, small and medium enterprises and agricultural sector while exercising caution in corporate lending, Mr. Bhagavantha Rao said.

The deposit and advances increased by 15 per cent and 18 per cent respectively.

SBH plans to add 150 new branches to the existing network of 1558 branches and recruit 900 officers in the financial year 2013-14.

Five all-women branches would also be opened in a couple of months in Hyderabad, Visakhapatnam, Bombay, Pune and Salem, Mr. Rao added.


 


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