The Hindu Business Line : State Bank of Hyderabad open to M&A route

"With every passing day, the possibility of consolidation is increasing. We are open to acquisition or merger on a case to case basis," Mr Amitabha Guha, Managing Director, State Bank of Hyderabad, told newspersons here.

Responding to a question whether the consolidation would be between the SBI and associate banks, Mr Guha said it could even be outside the associate banks of SBI.

Good Business

State Bank of Hyderabad also aims to cross Rs 1,00,000 crore business in the current fiscal. In 2006-07, it crossed Rs 71,000 crore business. Further, in 2007-08, it expects 39 per cent increase in operating profit on a 22 per cent and 24 per cent growth in deposits and advances, respectively.

On the long-pending issue of an initial public offer of the bank, Mr Guha said it would happen some time after Parliament passes the amendment to the State Bank Subsidiaries Act. "We are expecting that it would be approved by Parliament in the winter session," he said.

The issue of IPO is independent of State Bank of Hyderabad's merger with SBI or any other bank. "Whether we merge or not, we need capital to meet Basel II norms and to broad base the authorised capital," he said.

The bank was acting fast on Basel II norms. The RBI's deadline for the banks on Basel II norms is March 2009. "We are much ahead of others. We will be ready by September this year," Mr Guha said.

On the expansion front, the bank had opened 20 branches in 2006-07 and plans to add 52 more to its network in 2007-08. "We are expecting licence from the RBI. We will concentrate on opening new branches in tier II cities," he said.

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