Business Daily from THE HINDU group of publications
Tuesday, May 01, 2007
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Business Daily from THE HINDU group of publications Tuesday, May 01, 2007 ePaper |
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Money & Banking
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Financial Performance Corporate Results - Public Sector Banks State Bank of Hyderabad net rises 67% Our Bureau
Kolkata April 30 State Bank of Hyderabad (SBH) has recorded a net profit of Rs 199.55 crore in the fourth quarter of fiscal 2007, a 67 per cent increase over the net profit of Rs 119.39 crore in the corresponding period of the previous year. The bank has recorded an operating profit of Rs 374.53 crore, a 140 per cent increase, against Rs 155.94 crore. The net and gross profit figures have been recorded after netting extraordinary incomes of Rs 104.06 crore and Rs 140.72 crore, respectively. Business growth during the quarter of fiscal 2007 (Rs 5,555 crore) was more than the growth in Q4 of 2005-06 (Rs 3,383 crore), an increase of over 60 per cent. For the full year, SBH saw its net profit rise by 18.37 per cent over the previous year, reaching a record Rs 505.5 crore. Its operating profit grew by 36.15 per cent to Rs 1,003.8 crore. Its returns on assets stood at 1.03 per cent. Net interest margin was 3.44 per cent at the close of 2006-07. "Our total business crossed Rs 71,000 crore during the financial year. This represents an annual growth of over 25 per cent," Mr Amitabha Guha, Managing Director, SBH, told newspersons, adding that its agri portfolio grew by 34.5 per cent. Housing loans were up by over 23 per cent. The bank, which recorded a 22 per cent and 34 per cent increase in deposits and advances, respectively, has a CD ratio of nearly 68 per cent. Looks at 10-15% dilution of equity
SBH, which operates on an extremely low authorised capital of Rs 50 crore, is looking at a 10-15 per cent dilution of equity. No decision, however, has been taken on this front. The bank, Mr Guha noted, is eyeing a capital issue, provided all conditions, including Parliamentary clearance, are met. The idea is to reduce the face value of the SBH share to Rs 10 from Rs 100. The authorised capital will be scaled up to Rs 500 crore. SBH, which has a capital adequacy ratio of 12.5 per cent, intends to have retail individual investors participate in the bank's growth, post-listing. No individual shareholder can now hold more than 200 shares, a norm that will stand corrected in the foreseeable future. SBH also has room for Rs 550 crore of Tier-II capital. "We have an EPS of Rs 2,930 and a book value per share of well over Rs 14,000. A capital issue will allow retail investors to hold our shares," he said.
More Stories on : Financial Performance | Public Sector Banks
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