State Bank of Hyderabad Q4 net profit rises 17 pc

Tags: Companies
State Bank of Hyderabad has posted a 17 per cent growth in its net profit for the fourth quarter of the March ended fiscal at Rs 444 crore against the Rs 380 crore achieved in the corresponding period last fiscal.

The total interest income for the bank in this period also grew by 6.91 per cent to Rs 3,451 crore.

The bank, however said that their asset quality was affected mostly because of the general economic slowdown, which resulted in the gross nonperforming assets moving up from Rs 3,186 crore for FY 13 period to Rs 5,824 in FY 14. The net NPAs too went up to Rs 2,985 in FY 14, while it was 1,449 crore in the last year period, marking the ratio to 3.12 per cent.

The bank faced stress in sectors like infrastructure, food processing, iron and steel, textiles and chemicals. “While the problem with the other sectors is common with other banks, food processing is localised to our back. Meanwhile, we will get a clearer view about our growth only after the new budget and it will also depend on the forthcoming monsoon which is believed to be below normal, this year,” said Bhagvantha Rao, managing director of the bank.

There are around 67 accounts from the bank that are now going through the corporate debt restructuring amounting to Rs 4,400 crore. For the complete year – FY 14 – the bank reported a net profit of Rs 1020 crore, a drop from Rs 1250 crore it had achieved last year. The total business for the period stood at Rs 2,20,910 crore with advances of Rs 98,886 crore.

On the other hand, the bank does not see its merger happening with the State Bank of India for the next three to four years. “The merger may not happen for a few years now as it requires capital and we would need capital for our own growth,” Rao said.

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