State Bank of Hyderabad's (SBH) net profit increased 75 per cent to Rs 450 crore in the fourth quarter ended March 31, 2011 compared with Rs 257 crore in the year-ago period.
“Our core operations were very strong for the last two years which resulted in significant growth in net interest income and other income. Technology offerings and new products such as gold coin sale were among the drivers of profitability,” Ms Renu Challu, Managing Director, SBH told newspersons here on Friday.
For the full year ended March 31, 2011, the net profit had gone up by 42 per cent to Rs 1,166 crore (Rs 823 crore).
The total business had increased by Rs 27,500 crore to touch Rs 1.57 lakh crore, registering a growth of 21 per cent “The net interest margin had improved to 3.51 per cent from 2.92 per cent last year. And the asset quality continues to be one of the best in the industry,” she said.
Restructuring exercise
All-round growth could be achieved due to restructuring of operations with a general manager heading each vertical, Ms Challu added.
The gross non-performing assets (NPAs) and net NPAs were at 1.76 per cent and 0.87 per cent respectively.
SBH set apart Rs 1,153 crore (Rs 898 crore last year) as provisions and contingencies.
The corporate credit segment drove the growth in advances at 47 per cent of bank's asset book while in retail, total advances to personal segment borrowers constituted around 20 per cent of the bank's loan portfolio.
STRATEGY
Going forward, SBH would adopt a similar strategy, of retail thrust, all-round focus and increased penetration into the semi-urban and rural areas, the MD said.
The bank is planning to add 150 branches to its existing network of over 1,300 . It would recruit over 3,500 officers and clerks during the current financial year.
“Though the NIM at 3.51 per cent might come under little stress going forward, we are confident of continuing our growth in the current year too,” she added.
The capital adequacy rate was at 14.25 per cent.