State Bank of Hyderabad (SBH) posted a 49.25 per cent increase in net profit to Rs 257.13 crore for the quarter ended March 31, 2010, as compared with Rs 172.28 crore during the same period last year. Operating income was up 50.39 per cent to Rs 853.51 crore from Rs 567.53 crore during the period.
Net interest income during the quarter stood at Rs 596.73 crore, up 81.24 per cent from Rs 329.24 crore last year. For the full financial year 2009-10, this increased 33.6 per cent to Rs 822.71 crore from Rs 615.81 crore last year.
SBH managing director Renu Challu told mediapersons that the increase in profit was primarily based on income from interest, which grew 27 per cent to Rs 1,863. 24 crore from 1,466.78 crore. Non-interest income registered a growth of 9.36 per cent and the cost of funds decreased to 6.34 per cent from 7.20 per cent.
Deposits stood at Rs 76,186 crore and advances at Rs 65,676 crore taking the total business to Rs 1,29,530 crore, up by Rs 20,000 crore compared to last year. SBH’s market share improved by 4 basis point in deposits and 5 basis points in advances.
Challu said the focus on retail too paid rich dividends. The housing loans portfolio increased to Rs 1,260 crore during 2009-10 (Rs 666 crore the previous year). At Rs 4,734 crore, housing loan formed 9 per cent of the asset book of the bank. Vehicle loans were up to Rs 388 crore (Rs 112 crore in the previous year).
Despite drought and floods, advances to agriculture increased 27.58 per cent to touch Rs 8,580 crore. The bank also reduced the agriculture debt relief to Rs 20 crore from Rs 385 crore last year.
During the year, SBH opened 154 new branches and 456 ATMs. It plans to add another 200 branches and 500 ATMs during 2010-11.
