Business Daily from THE HINDU group of publications
Friday, Jan 18, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Friday, Jan 18, 2008 ePaper | Mobile/PDA Version |
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Money & Banking
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Financial Performance Corporate Results - Public Sector Banks SBH net rises 37% in Q3 
Our Bureau Hyderabad, Jan. 17 State Bank of Hyderabad (SBH) appears to be moving fast on the merger path with its parent bank, State Bank of India and a final picture is expected on January 25, when the SBH board is scheduled to meet. The bank has also posted a 36.72 per cent increase in net profit to Rs 135.19 crore in the third-quarter ended December 31, 2007 against Rs 98.88 crore in the corresponding quarter of previous year. “The merger is more feasible now. The merger of State Bank of Saurashtra with SBI is almost in line and the Government is also favourable to the merger of other associate banks with it,” Mr Amitabha Guha, Managing Director, SBH, told newspersons to announce the bank’s third-quarter performance here. “The market trend is also favouring the consolidation of banks. There cannot be a piece-meal approach to the consolidation of SBI’s associates. Albeit SBH is healthy enough to be on its own, it does not make sense when others are being merged,” he said. On the mood of SBH employees and officers on the merger issue, Mr Guha said: “I understand that a majority of service conditions are being made on par.” The board of SBH would meet on January 25, (a day after SBI board’s meet on January 24) to discuss the merger issue and pass a “suitable” resolution. Irrespective of merger issue, the bank had staged an impressive show in the third quarter, Mr Guha said. The growth in over all interest income and other income supplemented by Rs 50 crore inflow from treasury business pushed up the profits. However, the growing cost of liability with a 44.5 per cent surge in interest expenses restrained the growth in operating profit, he explained. The operating profit increased 16.28 per cent to Rs 253.48 crore (Rs 218 crore). The interest income grew by 32.39 per cent to Rs 1,120.22 crore (Rs 846.16 crore) while the interest on advances increased 42.25 per cent to Rs 810.96 crore (Rs 570.10 crore). Deposits and advances grew by Rs 7,436 crore and Rs 2,294 crore, respectively. Due to the function of provisioning, the net non-performing assets went up to Rs 85.08 crore (Rs 42.87 crore). The increase in risk-weight assets brought down the capital adequacy ratio to 11.52 per cent (12.79 per cent). The total business of the bank stood at Rs 84,500 crore. No moves yet on merger of other associates: SBH SBH Q2 net up 11% at Rs 142 cr SBH aiming for Rs 1 lakh cr turnover this year SBH nets Rs 99 cr in Q3 More Stories on : Financial Performance | Public Sector Banks
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