M. Bhagavantha Rao
State Bank of Hyderabad’s net profit declined 21 per cent at Rs 379 crore in the fourth quarter ended March 31, 2013 compared with Rs 481 crore in the same period last year.
For the full year 2012-13, net profit declined 3.70 per cent at Rs 1,250 crore (Rs 1,298 crore). Total business grew by 16.9 per cent to Rs 2,10,532 crore.
Higher provisions offset a 16.4-per cent increase in the net interest income at Rs 3,918 crore, M. Bhagavantha Rao, Managing Director, SBH, told newspersons here on Wednesday.
“We took a calculated decision to have lower profit but a healthy balance sheet with higher provision coverage ratio that is what has been prescribed by the Reserve Bank of India,’’ he said.
The net interest margin (NIM) was almost flat at 3.48 per cent (3.47 per cent).
The net non-performing assets increased to 1.61 per cent from 1.30 per cent last year.
The NPAs were high in the commercial/corporate segment, accounting for 73 per cent of total NPAs in FY2013.
The stress was noticed in sectors such as roads, food processing, textiles, metal, paper and plastics. In the current financial year, SBH would focus on lending to retail, micro, small and medium enterprises and agricultural sector while exercising caution in corporate lending, Bhagavantha Rao said.
The deposit and advances grew at 15 per cent and 18 per cent respectively.
The bank plans to add 150 new branches to the existing network of 1558 branches and recruit 900 officers.
Five all-women branches would also be opened in a couple of months in Hyderabad, Visakhapatnam, Bombay Pune and Salem, Rao said.
MERGER
When asked about the merger with its parent entity State Bank of India, he said clarity would emerge only after July.
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Published on May 8, 2013
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