Date:26/04/2008 URL: http://www.thehindu.com/2008/04/26/stories/2008042655531400.htm

Business

SBH posts 10% higher net profit

Special Correspondent

Provisioning prunes profit

HYDERABAD: The net profit of State Bank of Hyderabad (SBH) in 2007-08 went up to Rs. 556.99 crore from Rs. 505.60 crore, a growth of 10.2 per cent. However, the net profit dipped by 6.7 per cent to Rs. 186.23 crore in the fourth quarter ended March 31, 2008, from Rs. 199.54 crore in the corresponding period in the previous year.

Total business of the bank crossed Rs. 88,600 crore in 2007-08 against Rs. 71,000 crore, an increase of 24 per cent. The bank proposed a growth of 25 per cent in deposits and 30 per cent in advances in the current fiscal. The net profit is expected to be Rs. 765 crore.

The bank, in a release, attributed the decline in the net profit to a provisioning of Rs. 23 crore it made for wage revision and sick leave of employees in the quarter. It declared a dividend of 480 per cent. The bank announced that it became BASEL-II complaint.