State Bank of Hyderabad is a blend of tradition and modernity in banking.

Originally set up in 1942, it was the central bank of the erstwhile Hyderabad state and managed the then currency, Osmania Sikka, and public debt.

It was the first subsidiary of Reserve Bank of India before becoming an arm of State Bank of India in 1959.

But it caught up with the times and is now among the few banks that use technology to the maximum.

Mr M. Bhagavantha Rao, Managing Director, SBH shared his plans for the future with Business Line on the occasion of the Bank's 71st Foundation Day on April 5.

Excerpts from the interview:

How do you see the growth of SBH for last 70 years?

We have a great history and have also recorded healthy growth till now, with 1,475 branches as on date in Andhra Pradesh, Karnataka and Maharashtra.

We have over one crore customers which, I feel, is the biggest strength of SBH. The bank still operates some accounts of the erstwhile Nizam's era.

What will be your growth driver in the days to come?

Technology. This is going to be a major differentiator, not only for us, but for entire industry.

So far, core banking solutions have been used largely for accounting purposes. It will now be increasingly used to enhance customer relationship management.

Can you name some specific areas where you are going to harness technology in the future?

We are working on perfecting data archival systems. The huge volumes of data could be better used for ratings of customers, both external and internal.

Internal ratings are especially important as they allow some differentiation in pricing as the Basel recommendations kick in.

In all other aspects, our technology-based services are on par with the best in the industry.

What are your expansion plans for 2012-13?

We plan to open 175 branches in Andhra Pradesh and outside the State. Last year, we opened 160 branches.

On the manpower front, the recruitment process to hire 1,280 probationary officers and 1,500 clerks is currently on.

What is your focus area in business for the new financial year? And how was the last year?

We are doing very well in agriculture.

There will be more focus on micro, small and medium Enterprises.

For the year ended March 31, 2012, our advances and deposits grew at 20 per cent and 15 per cent respectively as per provisional figures.

The total business has crossed Rs 1,75,000 crore. The exact data are yet to come.

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