As it enters the platinum jubilee year, State Bank of Hyderabad (SBH), the erstwhile central bank of the Hyderabad state, has crossed ₹2.5 lakh crore-mark in total business.
“We have reached this milestone with steady compounded annual growth rate in recent years,” its Managing Director Santanu Mukherjee told BusinessLine here. The bank has been growing at a CAGR of 14-16 per cent over the years.
Since then, it has come a long way. “The journey has been good and the growth of SBH has been synonymous with the growth of Hyderabad,” said Mukherjee.
In the third quarter ended December 31, 2015, its operating profit grew 16.6 per cent over the same period last year. However, the bank’s net profit came down on account of higher provisions made as part of the early recognition of non-performing assets (NPAs) as suggested by the RBI. The bank is expected to do well in the fourth quarter on the recovery front. “We have done well in retail loans below ₹5 crore,” the MD said, adding that as for advances above ₹5 crore, they are dependent on the prevailing macroeconomic environment as well.
Looking ahead There is some uncertainty on the future of the SBH brand in the context of consolidation of banks now being considered by the Centre. The key question is whether SBH will be merged with its parent SBI.
“We are more focussed on efficiency of operations rather than thinking about merger with SBI,” he said, adding that some clarity on consolidation of public sector banks is likely to emerge after September this year.
SBH will officially celebrate its platinum jubilee on April 5 at the Shilpa Kala Vedika here. Telangana Chief Minister K Chandrasekhar Rao will be participating. The bank has also launched a special product named Platinum Deposit, which offers 7.95 per cent interest.