Hyderabad, Telangana India State Bank of India Hyderabad

STATE BANK OF HYDERABAD
State Bank of Hyderabad (SBH) is a nationalised bank in India, with headquarters at Hyderabad,
Telangana State. It is one of the five associate banks of State Bank of India and is one of the
scheduled banks in India. It was founded in 1941 as Hyderabad State Bank. Since 1956 it has been a
subsidiary of State Bank of India and now is State Bank's largest associate bank.
The Bank's head office is situated at Gunfoundry Area, in Hyderabad,. SBH has over 1,500 branches
and about 12,800 employees. Assets are in excess of Rupees 767 billion.
SBH Head Office at Gunfoundry

The bank has performed well in the past decades, winning several awards for its banking
practices. Smt Arundhati Bhattacharya is the current Chairman and Sri. Santanu Mukherjee is the
current Managing Director. It is the chief banker of Telangana State.
History of the Bank
The bank originated as the central bank of the erstwhile Nizam state under the name, Hyderabad
State Bank. It was established on 8 August 1941 under the Hyderabad State Bank Act, during the
reign of the last Nizam of Hyderabad, Mir Osman Ali Khan. The bank managed the Osmania Sicca,
the currency of Hyderabad state, which covered the present-day Telangana , HyderabadKarnataka ofKarnataka and Marathwada of Maharashtra. (At the time a number of the princely states
had their own currencies.) The bank also carried out commercial banking. The bank opened its first
branch at Gunfoundry, Hyderabad on 5 April 1942. The Imperial Bank of India, which had
established a branch in Hyderabad in 1868 and another in Secunderabad in 1906, provided officers
and clerical staff in the initial stages, and later trained provided training for new recruits. The first
secretary of Hyderabad State Bank was Muhammad Saleh Akbar Hydari, son of Sir Akbar Hydari.
After Partition, on 17 September 1948 the Indian Army conducted Operation Polo, which resulted in
the annexation of Hyderabad to India. By 1950, the bank had some 50 branches, including branches
in parts of the then Hyderabad State that would later be transferred to other states.
In 1953, the bank absorbed, by merger, the Mercantile Bank of Hyderabad, which Raja Pannalal
Pitti had founded in 1935. (Other accounts give year of founding as 1946 and that of merger as
1952). In the same year, the Bank started conducting government and Treasury business as agent for
the Reserve Bank of India.
In 1956 the Reserve Bank of India took over the bank as its first subsidiary and renamed it State Bank
of
Hyderabad.
That
same
year
saw
the
break-up
of
Hyderabad
State.
Aurangabad, Beed, Parbhani, Nanded,and Osmanabad mergedwith Maharashtra state.
Gulbarga, Bidar, Raichur, and parts of Osmanabad were attached to Karnataka state. The remaining
districts formed Telangana. After the trifurcation, the branches of Hyderabad State Bank continued to
conduct government transactions in their new states as well.
The Subsidiary Banks Act was passed in 1959, so on 1 October 1959 it and the other banks of the
princely states became subsidiaries of SBI.
Products
SBH offers a basket of myriad deposit products catering to all age groups. SBH is interalia, into rural
finance, especially credit to agriculture and allied activities. Loans for self help groups, Tractor loans
and loans for horticulture development are part of prioritized activities. In the retail segment the bank
is very active in financing housing and education apart from financing two wheelers and cars. The
bank has focused on financing the SME sector in a big way over the last two years. The bank has
several pioneering loan products like Laghu Udyami credit card, SME Credit Plus, SME Smart Score
and Kanya Vivah Suvidha scheme to help Indian households perform their daughters marriages. The
bank has its fair share of business in financing Indias manufacturing sector especially the small and
medium enterprises. Almost 50% of the banks credit is extended to commercial & industrial projects.
Through its network of specialized branches the bank has good exposure in financing infrastructure
projects such as airports, seaports, roads, power etc. The bank has financed large number of industrial
export activities in sectors like diamonds, textiles, pharmaceuticals, steel etc. New Initiatives SBH
has implemented technology driven initiatives such as Core Banking Solutions (CBS), Internet
Banking, Any Branch Banking, Real Time Gross Settlement (RTGS), and NEFT (National Electronic
Funds Transfer). Business Process Reengineering (BPR) initiatives focus on improving the quality of
customer service, reducing turnaround time for sanction and disbursement of loans with several
centralized processing centers launched in the last one year in both retail and small enterprise
segments.
All the branches of the Bank are totally networked under Core Banking Solutions, offering a wide
range of products to its customers. All the customers of the Bank have access to the latest
technologies like Internet Banking, ATMs etc. The Bank has pan India presence and operates through
more than 1600 Bank branches.
Bank Performance
Banks total business crossed to `. 2.20 lakh crores reaching a level of `. 220910 crores in the year
2014 compared to `. 210618 crores during the financial year 2013.
Aggregate deposits of the bank grew by 3.07 per cent to reach a level of `. 120, 868 crores as on
March 2014 from `. 11, 7270 crores as on March 2013. The market share of the bank in ASCB
deposits was 1.54 per cent as at March 2014 against1.71 per cent as at March 2013. The reduction
the market share is on account of reduction in bulk deposits by `. 8688 cores. CASA deposits
increased from `. 32, 695 crores in financial year March 2013 to `. 36882 crores in financial year
March 2014. CASA ratio increased by 263bps 30.51 per cent as on March 2014.
Advances grew by 7.29 per cent during the financial year 2014 to reach a level of `. 98, 886 crores as
on March 2014 as against `. 92, 171 crores. The market share of the bank in ASCB advances
retained at 1.60 per cent.
Branch Expansion:
During the FY 14, 136 new branches were opened as against 83 branches in FY13. This consists of
Rural-41, Semi Urban-49, Urban-26 and Metro-20. The bank has opened 25 per cent of the branches
in unbanked rural centers as per stipulations of RBI.
The total branch network expanded from 1,558 in FY to 1,694 as at March 2014. The population
wise breakup is as under.
Population Group
Rural
Semi Urban
Urban
Metro
Total
Total Branches
513
544
356
281
1,694
Percentage
31.00
32.00
26.00
16.00
100.00
Source: Annual Report SBH Bank 2013-14
State wise distribution of bank branches are as under

State
Andhra Pradesh
Maharashtra
Karnataka
Tamilnadu
Other States & UTs
Total
Rural
380
65
57
4
7
513
Semi Urban
350
109
52
20
13
544
Urban
200
64
46
12
34
356
Metro
135
43
25
18
60
281
Total
1065
281
180
54
114
1694
Priority Sector Lending:

Banks lending to priority sector increased from `. 30,826 crores in March 2013 to `. 35,492 crores
at March 2014. Priority sector lending (PSL) ratio stood at 38.67 per cent of the Adjusted Net Bank
Credit (ANBC) of the bank of `. 91, 777 crores vis--vis the benchmark of 40 per cent.
Advances to Priority Sector
Advances
Direct Agricultural Advances
Indirect Agricultural Advances
Total
March 2013
11, 083
3, 428
14, 511
(`. In Crores)
March 2014
Growth
13, 284
2, 201
3, 621
193
16, 905
2, 394

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Hyderabad, Telangana India State Bank of India Hyderabad

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STATE BANK OF HYDERABAD

SBH Head Office at Gunfoundry

Source: Annual Report SBH Bank 2013-14

State wise distribution of bank branches are as under

Source: Annual Report SBH Bank 2013-14

Priority Sector Lending:

Source: Annual Report SBH Bank 2013-14

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