Jan. 20: State Bank of Hyderabad remains cautions on lending to microfinance companies until the volatile situation stablises. The bank currently has a small exposure of Rs 60 crore to micro lenders.
Though denying a freeze on lending to MFIs, SBH managing director, Ms Renu Challu said any bank would have to be cautious in lending in the backdrop of the ground reality in Andhra Pradesh. She has also deni-ed receiving any requests for fresh loans from the MFIs.
Ms Challu was talking to media persons after announcing the third quarter results here on Thursday. The bank has posted a 13.2 per cent increase in net profit at Rs 250 crore for third quarter of fiscal 2011 as against `221 crore in the same period year ago. Total income stood at Rs 2,214 cro-re as against Rs 1,788 crore in the year-ago period.