State Bank of Hyderabad's net profit decreased 12.3 per cent to Rs 232 crore in the second quarter ended September 30, 2011 compared with Rs 264 crore in the year-ago period.
The decrease was due to a 71 per cent increase in provisions and contingencies at Rs 324 crore (Rs 189 crore), Mr M. Bhagavantha Rao, Managing Director, State Bank of Hyderabad, told newspersons here on Tuesday.
The net non-performing assets had gone up to 1.92 per cent from 0.64 per cent. The increase in non-performing assets was due to prevailing economic scenario during the last six months and problems in two large corporate accounts, Mr Rao said.
Going forward, focus would be on recoveries along with business growth across all segments.
The total business expanded by 21.14 per cent to touch Rs 1,62,241 crore as on September 30. The business could grow over 17 per cent in the next two quarters, Mr Rao said.
A decision on revising interest rate on savings bank accounts would be taken soon. The minimum balance in savings accounts was reduced from Rs 5,000 to Rs 1,000 for accounts with cheque facility. For accounts with no cheque-book it has been brought down to Rs 500.
The branch network was at 1401. Plans were afoot to open 150 branches in the present financial year, Mr Rao said.
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