The Hindu Business Line : SBH Q2 net up 11% at Rs 142 cr

Hyderabad, Oct 23 State Bank of Hyderabad (SBH)’s net profit increased by 11 per cent to Rs 142.38 crore in the second quarter of the current fiscal ended September 30, against Rs 128.75 crore in the corresponding quarter of the previous fiscal.

Total income was at Rs 1,209.70 crore (Rs 913 crore) marking about 33 per cent growth.

Net profit for the half year increased 13.7 per cent to Rs 235.57 crore (Rs 207 crore). The total business crossed Rs 74,640 crore (Rs 63,852 crore), Mr R.P. Sinha, Chief General Manager, SBH, told newspersons here on Tuesday.

Aggregate deposits

Aggregate deposits grew by 10 per cent to Rs 42,977 crore on a year-on-year basis compared with the first half of the last fiscal, while advances increased 29 per cent to Rs 31,039 crore.

Net NPAs as a percentage to net advances stood at 0.30 per cent as against 0.23 per cent at end of first half of last fiscal.

The capital adequacy ratio stood at 12.18 per cent (13.49 per cent), Mr Sinha said.

Focus on casa

The bank, as a strategy, would be focussing more on increasing the percentage of current accounts and savings accounts (CASA) deposits.

“We have decided to shed high cost deposits as they are affecting our bottom line. We could cut down Rs 3,500 crore high-cost deposits by non-renewal of some of the existing deposits. Instead we had mobilised Rs 2,500 crore CASA deposits through a special campaign in September 2007,” he said.

On the issue of merger of SBH with SBI, he said: “It will happen but no time frame can be given.”

The bank had also withdrawn its plans to go for a public issue as it had enough capital to meet Basel II norms by March, 2008, he added.