Date:15/11/2008 URL: http://www.thehindu.com/2008/11/15/stories/2008111555410600.htm

Business

No impact of recession as of now: bank official

Special Correspondent

State Bank of Hyderabad focuses on deposit mobilisation

Renu Challu

VISAKHAPATNAM: The world-wide economic crisis has not yet hit the Indian banking industry till now, but it would feel the pinch if the crisis continues for long and becomes deep, observed Managing Director of State Bank of Hyderabad Renu Challu here on Friday.

Right now there is an indirect impact as the overseas funding having been stopped for the corporate sector demand was now being directed to the Indian banks. Exporters are affected due to devaluation but there is no rise in NPAs of banks as yet and there is also no liquidity crunch, Ms. Renu explained and said “We have to be careful now.”

On SBH’s business activity, its MD said the focus was on mobilising deposits while offering the present rate of interest. The bank’s deposits stand at Rs.56,407.73 crores and advances at Rs. 39,880.98 crores during the first half-year of this fiscal. The operating profit was Rs.570.10 crores which was 48 per cent higher than the last half and net profit was Rs.240.66 crores.

One of leading banks

SBH is one of the leading banks being bigger than six public sector banks and one of the largest associate banks of the SBI.

The bank has 1010 branches, with 645 of them in AP and has a very good presence in Gulbarga, Aurangabad and other areas outside the State, which were once part of Hyderabad State, and branches in all metros along with Zonal offices.

It is opening 100 branches in the coastal area by the end of 2009 by concentrating more on the rural and semi-urban areas to become “AP’s local bank”, Ms. Renu said. One branch would be opened in the Gangavaram port by November end. It is making efforts to increase its customer base and fine tuning its products. SBH has added the portfolio of equipment finance to contractors.

Ms. Renu also indicated that car lending rates may come down in a month’s time.

SBH is advancing education loans to students of all IIITs and sanctioned loans to nearly 5,000 students during the last six months, which was double in number than last year. It was also the bank for the State Government’s prestigious Arogya Sri and the educational scholarships programme. So far 2 lakh ATM cards have been distributed to the students.

Deputy General Manager V. Narendra Babu was also present.