SBH to reach Rs 1 lakh cr business in 2007-08,net up by 18.37%

Kolkata, Apr 30(UNI) State Bank of Hyderabad(SBH) has targetted a total business of Rs one lakh crore by the end of 2007-08 and the net profit would be up by 25 per cent in the current fiscal from the Rs 505.50 crore in 2006-07.

Speaking on the sidelines of a press conference here today, SBH Managing Director Amitabha Guha said the bank also plans to tap the market with an initial public offering in September or October following the amendement of the State Bank of India Subsidiary Bank Act 1959 in the current session of Parliament.

Mr Guha said after the amendment, individuals would be able to buy more than 200 shares of the bank, which was the existing ceiling.

Share dilution would also be possible after the amendment takes place. Moreover, the authorised capital of the bank could be raised from the current level of Rs 50 crore to Rs 500 crore.

The bank would also start branch expansion in a major way. ''We will open 52 new branches in the current fiscal, most of which will be in coastal Andhra Pradesh, while four new branches in Kolkata,'' he said.

The bank also plans to raise Rs 1000 crore through Tier I and II route.

The net profit was registered at Rs 505.05 crore, up by 18.37 per cent, in 2006-07 compared to the corresponding period in the previous year. The Cash Adequacy Ratio(CAR) was 12.51 per cent. The total business of the bank was Rs 71,000 crore in 2006-07 with an annual growth of 25.7 per cent.

The bank's deposits grew by 21.99 per cent and advancesby 33.94 per cent.

Net NPAs reduced from 9.36 per cent of net advances to 0.22 per cent. The Credit Deposit Ratio also increased to 67.9 per cent.

UNI