 "State Bank of Hyderabad Q2 net up 21% at Rs 375 crore")
The bank's total income for the quarter under review grew 7.35 per cent at Rs 3,945 crore as compared with Rs 3,675 crore in the corresponding quarter last year. Of this the net interest income, however, increased by just 3 per cent to Rs1,127 core from Rs 1,094 crore in the year ago period.
SBH managing director Santanu Mukherjee said a combination of efforts including the reduction of high cost bulk deposits and a decline in the non-performing assets (NPAs) have helped the bank to achieve better financial performance in this quarter.
Over Rs 1 lakh crore out of the total deposits of Rs 1,31,051 crore, which grew by 9.49 per cent, were the savings deposits giving that much cost advantage to the bank. Total advances during the quarter grew by 6.75 per cent to Rs 1,05,301 crore. Net interest margin (NIM) stood at 3.05 per cent.
Responding to a question on credit growth outlook, Mukherjee said the bank may touch the double digit growth in advances by the end of the current financial year if the corporate loans start picking up later this year. The bank has consciously reduced its exposure in big ticket loans to 45 per cent of the total loan portfolio compared to over 48 per cent in the year ago period considering the overall business environment. Instead, it has shifted its focus to SMEs and personal loan segment, which grew 21 pere cent in the quarter under review.
"We have set a target of 25 per cent growth in housing loans as compared with the present 19 per cent level and a 20 per cent growth in vehicle loans for the full year," SBH MD said.
