State Bank of Hyderabad (SBH) posted a 21 per cent increase in net profit at Rs 375 crore in the second quarter ended September 30, 2015 compared to Rs 311 crore in the corresponding quarter of previous financial year.
The increase in net profit was due to improvement under Other Income, cost reduction and better management of Non Performing Assets (NPAs), its Managing Director Santanu Mukherjee told newspersons at a press conference here on Wednesday.
Driven by 6.75 per cent growth in advances and 9.49 per cent growth in deposits, the bank’s total business grew 8.25 per cent at Rs 2,36,352 crore.
The net interest income grew by 3 per cent to Rs 1,127 crore (Rs 1,094 crore) and net interest margin fell to 3.05 per cent from 3.17 per cent. The gross and net NPAs declined to 4.92 per cent (5.73 per cent) and 2.39 per cent (2.87 per cent) respectively. By the end of current financial year, the target is to bring down NPAs to about 4 per cent.
“We have shifted our focus from large corporate to retail with regard to lending which has been paying off,’’ the bank’s Managing Director said.
The home loan segment has shown 19 per cent growth and SBH is hoping for 25 per cent growth in home loan segment in the remaining quarters of the year.
It is also planning to raise Tier II capital. ``The quantum and timing will be decided in line with the market conditions,’’ Mukherjee said.