The Hindu Business Line : SBH sees growth from infrastructure funding

STATE Bank of Hyderabad (SBH) is eyeing the infrastructure sector and has recently approved funds for the greenfield Gangavaram port and the Hyderabad International Airport projects.

The Managing Director of State Bank of Hyderabad, Mr Amitabha Guha, told Business Line that infrastructure has emerged as one of the fastest growing sectors and the bank was targeting areas such as power, roads and construction.

While the Gangavaram port has been funded up to Rs 150 crore, the airport project is set to get Rs 120 crore.

Mr Guha inaugurated a small entrepreneurs credit cell at Secunderabad, its 25th centre.

The number of centres would be expanded to 45 by December-end, Mr Guha said. "Last fiscal, the bank registered a turnover of Rs 45,000 crore. Given the performance of the bank in the five months, we are confident of achieving Rs 54,000 crore. This year, we expect the deposits to achieve Rs 4,800 crore growth and advances to grow by Rs 4,000 crore," he said.

"Last year, the bank's overall profitability took a beating because of treasury operations. However, this year, we expect to achieve a net profit of Rs 350 crore," he added.

The bank's retail sector expanded by 44 per cent last year and this year it is projected to grow by about 35 per cent. Housing loan has become an important aspect and we have earmarked Rs 800 crore, he said.

The bank has set aside Rs 550 crore for small entrepreneurs, who have revenues of Rs 5 crore with an investment of Rs 1 crore.

Referring to Basel II norms, Mr Guha said: "banks are required to go for these norms by April 2007. However, SBH will be able to achieve this by June 2006 covering credit risk, operational risk and market risk. As a part of this effort, the bank plans to raise Rs 500 crore in Tier-II capital."

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