The Hindu Business Line : SBH eyes capital market

The Managing Director, Mr Amitabha Guha, told Business Line that the bank was governed by the Subsidiary Act and an amendment would be necessary to facilitate its debut into the capital market. "We need to do a due diligence now," he said and added that it would be too early to spell out the size or other details of the proposed issue.

According to him, the bank would need to strengthen its capital base to put in place a system that would be `Basel II ready'. "We are targeting to double our business to Rs 1 lakh crore by March 2008, expand our branch network from 941 to 1,000 and reduce the net NPA significantly. To achieve this growth, we will need capital," he said.

The introduction of business process re-engineering initiatives, coupled with core banking solution (CBS) service, has helped the bank grow at a steady pace, said Mr Guha.

The entire branch network was hooked to the CBS platform, but the facility was not extended globally. State Bank of Hyderabad would, however, offer `anywhere anytime' banking service across this network by June this year.

Mr Guha said treasury profits took a beating last year, dropping from Rs 418 crore in 2004-05 to Rs 80 crore in 2005-06, while the interest income registered a 33 per cent growth. He said trading of commercial papers would not increase the bank's income significantly.

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