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State Bank of Hyderabad has made impressive strides in recent years and has recorded growth of nearly 50 per cent in just two years, from Rs 1,06,128 crore to Rs 1,53,348 crore, according to Mr Bhagavantha Rao, new Managing Director.
Mr Rao, who assumed charge only a week ago, was talking to presspersons here on Monday after inaugurating the new NRI branch near Nehru Bazar, the first in Vizag and only the second in the State. He said that during the past one year, the business growth was 19.35 per cent. Deposits increased by 17.86 per cent to Rs 93,363 crore and advances by 21.53 per cent to Rs 65,605 crore. The business per branch increased to Rs 119 crore from Rs 109 crore and per employee from Rs 9.88 crore to Rs 11.71 crore.
The bank had earned a profit of Rs 283.94 crore in the first quarter which was 41.1 per cent than during the corresponding period last year. The interest income had increased by 30.24 per cent to Rs 814.95 crore over last year. The operating profit grew to Rs 771 crore up to July this year as compared with Rs 631.83 crore last year and the capital adequacy ratio stood at a healthy 12.71 per cent as on June, he said.
Branch network expansion
Mr. Bhagavantha Rao said the SBH was planning to open 150 new branches this year, with around 80 coming up in unbanked areas. A total of 18 branches would be opened in the coastal districts of Andhra Pradesh. The bank would recruit 4,000 officers and clerical staff this year.
In replying to a query, he said there was a 10 per cent drop in home loan applicants but the quantum did not drop which perhaps indicated that the cost per unit had increased. Last year, the Vizag zone disbursed Rs 150 crore in home loans.
Targets
Asked whether there were any targets set for the new NRI branch, SBH Deputy General Manager, Mr A.N. Krishnan, said that there were no targets. The first NRI branch in Hyderabad had collected Rs 80 crore in deposits and disbursed Rs 25 crore in loans. He expected the new branch in Vizag to mobilise about Rs 10 crore to Rs 15 crore deposits.
“We have added as many as 120 branches in coastal Andhra Pradesh, from Machilipatnam to Ichchapuram, during the past two years. Today we inaugurated the sixty-second branch in Visakhapatnam region, taking the total number of bank branches in the country to 1,339. The bank has 864 branches and 938 ATMs in Andhra Pradesh,” he added.
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