SBH net up 13%

State Bank of Hyderabad (SBH) reported a net profit of Rs 250.17 crore for the third quarter ended December 2010, up 13 per cent as compared with Rs 220.98 crore during the same period last year. Overall income during the quarter increased 23.8 per cent to Rs 2,213.83 crore from Rs 1,788.40 crore.

The lower growth in net profit was on account of higher provisioning for new pay package for staff, including contingencies, totalling Rs 230.80 crore for the reported quarter as compared with just Rs 72.83 crore in the corresponding period last financial year. Interest income, which grew 23.79 per cent to Rs 1,964.39 crore from Rs 1,586.86 crore was the major contributor to the bank's income growth during the period, managing director Renu Challu told mediapersons on Thursday.

She said the bank had achieved all the targets pertaining to priority sector lending.

Net profit for the nine-month period grew 26.58 per cent to Rs 715.89 crore as compared with Rs 565.58 crore in the corresponding period last year. Total income for the period was up 21.55 per cent to Rs 6,353.45 crore (Rs 5,226.98 crore).

The bank plans to launch 100 more branches in the next 3-4 months in addition to the already existing 1,264 branches in the country.