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![SBH eyes 20% upswing in net profit this fiscal SBH eyes 20% upswing in net profit this fiscal](https://assets.thehansindia.com/hansindia-bucket/9723_SBH.jpg)
Weighed down by higher provisions towards stressed assets as mandated by Reserve Bank of India, the State Bank of Hyderabad registered a 43.18 per cent decline in its net profit to Rs 253.13 crore during the fourth quarter ended on March 31, 2016. It posted Rs 445 crore net in the same quarter a year ago.
Posts 253 cr net in Q4 of last fiscal; total business crosses 2.5 lakh cr
Hyderabad: Weighed down by higher provisions towards stressed assets as mandated by Reserve Bank of India, the State Bank of Hyderabad registered a 43.18 per cent decline in its net profit to Rs 253.13 crore during the fourth quarter ended on March 31, 2016. It posted Rs 445 crore net in the same quarter a year ago.
However, the city-based bank, a subsidiary of public sector lender State Bank of India, is targeting a healthy 20 per cent growth in its net profit in the current financial year that kicked off on April 1. “Our net profit has been impacted because we have made higher provisions due to surge in NPAs and also towards the accounts identified by the RBI as part of the asset quality review undertaken this year.
Overall, the banking industry will see surge in NPAs during the fourth quarter as already seen in the balance sheets of three to four banks announced recently. We are also part of the same system. So, we have also seen surge in NPAs,” Santanu Mukherjee, Managing Director, State Bank of Hyderabad, told media after announcing financial results here.
He however said that the bank would register 20 per cent growth in net profit during the current fiscal. “Our aim is to achieve 20 -25 per cent growth in net profit this financial year. We are sure of achieving the target unless some unforeseen challenges come in our way,” the SBH chief said. In the fourth quarter under review, the net interest income of SBH was down by 4.76 per cent to Rs 1,156.34 crore from Rs 1,214.12 crore a year ago.
Operating profit saw 4.65 per cent upswing to Rs 917.47 crore from Rs 876.68 per cent in the fourth quarter of FY15. The bank allocated Rs 664.34 crore towards provisions and contingencies in Q4FY16, an increase of 54.08 per cent from Rs 431.17 crore in the previous fiscal year.
Meanwhile, the SBH posted a net profit of Rs 1,064.93 crore in the full financial year ended on March 31, 2016, a decrease of 19.15 per cent from Rs 1,317.13 crore in the previous fiscal. The net interest income was up by 4.58 per cent to Rs 4,593.61 crore. The gross NPAs were at Rs 6,591 crore, or 5.75 per cent, and net NPAs at Rs 3,743 crore, or 3.37 per cent.
The bank did a total business of Rs 2.54 lakh crore last fiscal. The total advances went up by 5.20 per cent to Rs 1.14 lakh crore while total deposits climbed by 6.22 per cent to Rs 1.40 lakh crore. “We are hopeful of achieving 17-18 per cent growth in deposits. On advances front, we are targeting 12 per cent growth as we have increased focus on small ticket corporate loans with loan sizes ranging from Rs 5 crore to Rs 25 crore,” Mukherjee said.
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