SBH Q2 net up 81% as non-interest income zooms

State Bank of Hyderabad (SBH), the largest associate entity in the State Bank Group, has posted 81.02% increase in net profit to Rs 128.76 crore for Q2FY07 when compared with Rs 71.13 crore in Q2FY06.

During the half-year ended September 30, SBH has recorded a net profit of Rs 207.08 crore, up 46.37% over the same period of the previous year, Amitabha Guha,MD of the bank's said here today.

He attributed the profit growth to a sharp rise in non- interest income, prudent management of interest income and expenditure as reflected in the fact that while cost of deposits rose by 34 bps during the half year, yield on advances improved by 79 bps, and effective management of asset quality.

Guha said gross NPAs fell to 1.77% of total advances from 3.66% as at the end of September 30 and net NPAs dropped to 0.23% from 1.04%.

Gross and net NPA percentages have also improved from the March 31, 2006 levels of 2.13% and 0.36%, respectively, he said.