SBH Q2 net up 21% at 375 crore

Hyderabad: State Bank of Hyderabad (SBH) reported a healthy 20.87 per cent upswing in the net profit at Rs 375.31 crore for the second quarter ended on September 30, 2015. A significant rise in other income and fall in non-performing assets (NPAs) helped the bank in posting the robust profits. The bank’s net profit was Rs 310.52 crore in the corresponding three-month period a year ago.

“Our performance during the second quarter is quite good despite challenging circumstances. We are hopeful of posting much better growth in coming quarters if economic conditions improve,” Santanu Mukherjee, Managing Director, SBH, told media after announcing the second quarter financial results here on Wednesday.

During the quarter under review, the bank clocked an interest income of Rs 3,616.80 crore, a growth of 4.8 per cent from Rs 3,451.27 crore a year-ago. The net interest income (NIM), a key parameter in the banking sector, saw 3.01 per cent upswing to Rs 1,127.06 crore from Rs 1,094.08 crore a year-earlier. The bank’s other income, driven by rise in income from fees and treasury operations, zoomed by a whopping 46.75 per cent to Rs 328.68 crore from Rs 223.97 crore during July-September, 2014.

Bucking the current trend in the banking industry, the SBH has succeeded in bringing down non-performing assets (NPAs) or bad loans during the second quarter. The gross NPAs were down by 81 bps to 4.92 per cent from 5.73 per cent whereas the net NPAs decreased by 48 bps to 2.39 per cent from 2.87 per cent.

“The recovery of NPAs is the most important priority for us. We have activated all the available avenues for this purpose. So, the recovery has been quite good, resulting in reduction in NPAs,” Mukherjee said. The bank did a total business of Rs 2.36 lakh crore during the July-September, 2015, a growth of 8.25 per cent from the year-ago period. The total advances went up by 6.75 per cent to Rs 1.05 lakh crore while the total deposits rose 9.49 per cent to Rs 1.31 lakh crore.