SBI IN THE NEWS

[Print Page]SBI, ICICI Bank CMDs among Forbes most powerful women (May 29, 2014
State Bank of India chairperson Arundhati Bhattacharya and ICICI Bank managing d
irector Chanda Kochhar are among the five women from India featured in Forbes' 1
00 most powerful women in the world, a list topped by German Chancellor Angela M
erkel.
Bhattacharya is ranked 36th on the power list, while Kochhar is 43rd.
Biocon founder Kiran Mazumdar- Shaw is ranked 92nd on the list.
PepsiCo's India-born chief Indra Nooyi is 13th on the list while Ciscos chief tec
hnology and strategy officer Padmasree Warrior is ranked 71st on Forbes' definiti
ve annual guide to the extraordinary icons and leaders, ground breakers and ceil
ing crashers who command the world stage. Merkel, who retained her numero uno spo
t this year, has made the list 10 times out of the past 11 editions and nine tim
es as No 1.
Merkel is followed by chair of the US Federal Reserve Janet Yellen, philanthropi
st Melinda Gates (3), former US secretary of state Hillary Clinton (6), General
Motors' first woman CEO Mary Barra (7), US first lady Michelle Obama (8) and Fac
ebook COO Sheryl Sandberg 9).
Forbes said as the head of India's largest lender with about $380 billion in ass
ets, Bhattacharya holds one of the most powerful positions on the Asian subcontine
nt.
Not only is she the first woman appointed to the position, but she is also the yo
ungest at age 57, it said.
Bhattacharya has served almost every function within the company, including fore
ign exchange, treasury, retail operations, human resources and investment bankin
g.
When the Indian economy showed signs of slowing, she voiced strong support for ma
jor reforms across agriculture, industry and the financial sector.
Shes been an ally to women at SBI, introducing a two-year sabbatical policy for w
omen employees for child or elder care and serving on a team to create blueprint
s for the first all women bank, Forbes said.
SBI to fill up 5,092 clerical posts (May 29, 2014)
The State Bank of India has invited applications for 5,092 clerical vacancies. O
nline registration for the recruitment exam that will be conducted in July/Augus
t is on currently and will be done till June 16.
According to the recruitment advertisement, a clerk posted in a metro such as Mu
mbai will get starting emoluments of about Rs.17,500 a month, inclusive of DA an
d other allowances. Allowances may vary depending on place of posting.
SBI tops DBS in market value (May 29, 2014)
State Bank of India (SBI) Chairman Arundhati Bhattacharyas efforts to control bad
loans have helped restore the company as the most-valuable Asian lender outside
Japan and China.
A 49 per cent rally by SBIs shares this year has driven its market capitalisation
past peers from domestic rival HDFC Bank to Singapores DBS Group Holdings for th
e first time in 16 months.
SBIs gains accelerated last week after the company posted fourth-quarter profit t
hat beat analyst estimates as its bad-loan ratio narrowed to a year low.
The rally in SBI is gathering more legs as investors cheer the fall in the bad-lo
an ratio, Alex Mathews, head of research at Geojit BNP Paribas Financial Services
, said.
Funds playing for the sharpest macroeconomic bounce back in the Asia-Pacific are
buying into SBI.
SBl Takes a Good Lead (May 26, 2014)
The country's largest bank, the State Bank of India pleasantly surprised the str
eet on Friday by reporting an improvement in asset quality as well as net intere
st income. The operating profit, which rose 37% to 10,628 crore from 7,761 crore
also beat expectations. After a disappointing set of numbers last year the bank
ing behemoth has done well to pull up its socks and live up to the expectations
of its customers and shareholders under its new chairperson. Besides, the bank h
as won several prestigious awards in the banking category', even giving private
and foreign banks a run for their money. The biggest test for the bank will come
in the coming quarters as it strives to raise equity to meet Basel norms. But g
iven the bank's longhistory and its enviable reach it should have no trouble in
mopping up funds. Way to go, SBI
Higher loan recoveries boost SBIs asset quality (May 24, 2014)
A sequential improvement in asset quality, better cost efficiencies and higher g
rowth in non-interest income compared to the year-ago period were the key highli
ghts of State Bank of India (SBI)s results for the quarter ended March.
As a result, the decline in net profit (down 7.8 per cent at Rs.3,041 crore) was
lower than the estimated 15 per cent.
The SBI stock rose to a years high of Rs.2,775, before closing at Rs.2,755 on the
BSE, up 9.7 per cent.
SBI, which has been struggling to keep its asset quality under control in recent
quarters, surprised the Street with gross non-performing assets (NPA) and net N
PA falling sequentially to 4.95 per cent (down 78 basis points) and 2.57 per cen
t (67 basis points), respectively.
At Rs.61,605 crore, actual gross NPAs were about 10 per cent lower than estimate
d, driven by two-fold and four-fold sequential rises in loan recovery and upgrad
es, respectively.
While recoveries were driven by a three-fold improvement in agri recoveries, all
other segments (except small and medium enterprises, for which recoveries rose
only 11 per cent) witnessed manifold improvements in this metric.
Fresh slippages were 30.5 per cent lower at Rs.7,947 crore, compared to the Dece
mber 2013 quarter.
For the March 2014 quarter, the bank witnessed a fall of Rs.6,194 crore in gross
NPAs.

SBI regains top spot in terms of market cap (May 24, 2014)
After trailing HDFC Bank for more than a year, the State Bank of India (SBI) on
Friday overtook the private sector lender to regain the top spot in terms of m-c
ap.
At the end of Fridays trading session, the total market capitalisation of the lar
gest lender in terms of loan book stood at R2.05 lakh crore against HDFC Banks R1
.89 lakh crore.
On Friday, the HDFC Bank scrip slipped 1.63% to R789.50 on the BSE following rep
orts that government will turn down its proposal to raise the cap on foreign ins
titutional investment to 67.55%.
In May, the HDFC Bank scrip has gained 9.92%, underperforming the BSE Bankex, wh
ich has gained 19.15%. Meanwhile, the SBI scrip has outperformed the index with
gains of 32.53% in the month.
On Friday, the SBI scrip surged nearly 10% to a three-year high of R2,755.25 aft
er the bank posted better-than-expected results.
The bank saw a 7.8% y-o-y decline in its net profit to R3,041 crore, but beat Bl
oomberg consensus estimates of R2,807 crore.
Axis Capital raised the target price on the SBI scrip to R2,929 from R1,992 and
upgraded the stock to buy from hold after the results.


SBI may declare Vijay Mallya wilful defaulter (May 24, 2014)
State Bank of India (SBI), which has an exposure of Rs 1,600 crore to grounded a
irline Kingfisher, on Friday said it is exploring ways to declare the carriers pr
omoter Vijay Mallya as a wilful defaulter.
We are looking at various ways to declare Vijay Mallya a wilful defaulter and try
ing build a strong case in that regard, an SBI source said.
The source said that as per RBI guidelines, it would have to be proven that the
borrower had diverted funds which he has taken from the bank and not paying up d
espite having the ability to pay.
If we are sure on these two points, then the bank will declare Mallya a wilful de
faulter, the source said.
SBI Donates Rs.2 Crore to Ramakrishna Sarada Mission (May 23, 2014)
Arundhati Bhattacharya, Chairman, State Bank of India handed over a cheque for R
s. 2.00 crores to the General Secretary of Ramakrishna Sarada Mission at a small
function held on 22 nd May 2014 at Mission's premises, to supplement their vent
ure for construction of Swami Vivekananda Educational Complex - a School of Nurs
ing to be run under Ramakrishna Sarada Mission Matri Bhavan. Bank's Dy.
Managing Director Sunil Srivastava, Chief General Manager Smt Anuradha Rao, Gene
ral Managers Shri Vinod Pande and Kunjal Prasad and top executives of the Bank w
ere present on the occasion. The donation was made under the Bank's Corporate So
cial Responsibility activity.
SBI to raise Rs 800 crore by issuing shares to employees (May 23, 2014)
The Reserve Bank of India (RBI) has approved the State Bank of Indias (SBI) propo
sal to issue shares to its 2.3 lakh employees to raise over R800 crore, a move t
hat is likely to prompt other public sector banks (PSB) to follow suit.
SBI launches 'tab-banking' (May 21, 2014)
State Bank of India has introduced tab banking which facilitates hassle-free acc
ount-opening. As part of the initiative, the bank's representative would visit t
he customer's residence/office and by using a tab, would take photos and scan hi
s identity/address proof. "After filling-in a one page application together with
nomination option, the details would be uploaded to the central hut) and the cu
stomer will get the account-opening message on his/her mobile," SBI said in a re
lease.
SBI plans to offer 55 lakh shares to staff at a discount (May 20, 2014)
State Bank of India is planning to offer up to 55.56 lakh equity shares of Rs 10
each to its employees under an Employee Stock Purchase Scheme (ESPS) in one or
more tranches.
Indias largest bank said it proposes to offer the equity shares to its employees
at such discount as may be decided by its board.
The discount will be based on the average of the weekly high and low of the clos
ing prices of the shares quoted on the NSE during the two weeks preceding the la
unch date, but at a price not less than Rs 1,565 an equity share.
Going by the above formula and a discount of, say 5 per cent, the bank could mop
up about Rs 1,200 crore. At the floor price of Rs 1,565 a share, SBI could rais
e Rs 870 crore under the ESPS.
No SPV for raising capital from market: SBI (May 20, 2014)
The countrys largest bank, State Bank of India, has said that it is not looking a
t setting up a special purpose vehicle (SPV) for its real estates, an option bei
ng considered by the finance ministry as a means of raising capital from markets
.
We are not considering that option of SPV, State Bank of India (SBI) Chairperson A
rundhati Bhattacharya said. The idea of setting up an SPV for raising capital fr
om markets was floated at a meeting of Finance Minister P Chidambaram and heads
of public sector banks last week.
Under the proposal, a bank could set up an SPV to which it will transfer its rea
l estate assets. The bank then can pay rental or lease to the SPV to create an i
ncome stream for the SPV.
Based on this income stream, the SPV will raise money from markets. SBI, however
, plans to set up a holding company for the purpose of raising capital.
It (setting up a holding company including all subsidiaries) is one of the possib
ilities (for raising capital)....Currently, there is no clear view on this, she h
ad said.
The proposal for setting up of a holding company with the government, she said,
adding, it requires regulatory clearances.
Last week, Financial Services Secretary G S Sandhu had said various options like
employees stock option, special purpose vehicle model and holding company model
were discussed in the meeting of Finance Minister P Chidambaram with heads of P
SU banks by which banks could raise funds.
Sensex rises to record closing high on Modi hopes (May 20, 2014)
The BSE Sensex and the broader Nifty hit a record closing high on Monday as inve
stors continued to switch to stocks with a domestic focus, such as NTPC, on hope
s the new government to be led by Narendra Modi would spur major economic reform
s.
Punjab National Bank surged 10.5 per cent while State Bank of India jumped 6.2 p
er cent. Also, NSE midcap index ended 4.4 per cent higher after earlier rising t
o a record high, helped by a 16.8 per cent surge in Reliance Infrastructure and
a 14.3 per cent jump in Power Finance Corporation.
No Plan to Hive Off Real Estate: SBI (May 16, 2014)
SBI will not hive off its real estate assets into a separate company, chairman A
rundhati Bhattacharya said, even as the finance ministry is considering such a p
roposal to help state-run banks raise capital.
The bank is not interested in such a structure, Bhattacharya told ET, referring
to the suggestion of creating a SPV to hold and monetise the real estate.
We are not looking to set up any SPV. On Tuesday, after a meeting between finance
minister P Chidambaram and heads of public sector banks, financial services secr
etary GS Sandhu said the government may allow staterun banks to set up such SPVs
.
But with the countrys largest bank deciding not to commit for such a structure, t
he proposal may not take a concrete shape, said a finance ministry official.
If SBI is not there, the government may not be inclined to approve it, he added.
The government is looking at various options to enable banks to raise capital to
meet regulatory requirement as they step up lending.
The proposal was given by one bank and if there are some banks which find value i
n such an SPV, it should not be an issue, said the executive director of a state-
run bank.
The idea was to transfer all the real estate assets of a bank to the SPV, which
will then raise money on the basis of the income generated through rental or lea
se.
SBI plans to set up holding company for raising funds (May 14, 2014)
State Bank of India (SBI) has announced plans to set up a holding company for ra
ising funds. It (setting up a holding company including all subsidiaries) is one
of the possibilities (for raising capital)..currently, there is no clear view o
n this, SBI chairperson Arundhati Bhattacharya said.
The proposal for setting up of a holding company with the government, she said,
adding, it requires regulatory clearances. Setting up of holding company would a
lso require amendment to SBI Act, she said. Under the bank-wise holding company
model suggestion, she said, the bank will transfer all its subsidiaries to the n
ew company which in turn can tap market for funds.
Bank stocks most wanted (May 10, 2014)
Banking shares were in demand and the biggest beneficiaries on Friday as foreign
institutional investor (FII) buying gathered pace for the 14th consecutive sess
ion. Scrips of lenders advanced in the range of 3-10%, lifting the gauge of bank
ing shares to a new record high on Friday.
State-owned banks witnessed buying on hopes the economic recovery will resolve t
he asset quality problems. The country's biggest lender, State Bank of India (SB
I), gained 4.41% on the NSE
SBI to launch childrens savings a/c in 3 months (May 09, 2014)
Following the Reserve Bank of India (RBI)s move to allow minors aged more than 1
0 to open and operate savings bank accounts independently,the State Bank of Indi
a (SBI) on Thursday said it would start a special scheme for children soon.
We do open accounts for children, but we have restrictions on overdrafts.
This is because if there is overdraft, we wont be able to realise it.
However, there is no restriction on deposits.
We are going to launch a special scheme for children in the next three months, SB
I Chairman Arundhati Bhattacharya told reporters on the sidelines of a banking s
eminar organised by the Indian Merchants Chamber.
SBI wouldnt issue cheque books for such savings bank accounts, she added.
RBI has said for accounts for minors, banks can decide the age criterion and the
amount up to which minors can be allowed to transact.
It had added banks were free to offer additional facilities such internet bankin
g, ATM (automated teller machine)/debit cards, cheque book facility, etc, subjec
t to the conditions these accounts werent overdrawn and always had a certain bala
nce.
On RBIs directive to stop charging prepayment penalties on floating-rate loans, B
hattacharya said as SBI didnt have any such charges, there would be no impact on
its margins.
She added the bank charged foreclosure fees on fixed-rate term loans.
On the priorities before the new government, the SBI chief said it had to contai
n inflation on a priority basis and take steps to revive the investment cycle.
It had to engage with state governments for building consensus on implementing v
arious policies on land acquisition, etc, she added.
On lending models for commercial loans, she said there was a limit to asset-back
ed lending, as was the case with infrastructure financing.
Banks would have to consider experimenting with cash-flow-analysis-based funding
to farmers and small and medium enterprises.
54 Indian cos in Forbes list of Global 2000 firms (May 09, 2014)
Mukesh Ambaniled Reliance Industries Ltd ( RIL), ranked 135, leads the pack of 5
4 Indian companies in Forbes annual list of the worlds 2000 largest and most power
ful public companies, with Chinese companies occupying the top three slots on th
e list.
The Forbes Global 2000 is a comprehensive list of the worlds largest, most powerful
public companies, as measured by revenues, profits, assets and market value.
China is home to the worlds top three biggest public companies and f ive of t he
top 10.
The US retains its dominance as t he country with the most Global 2000 companies
at 564, while Japan is second on the list with 225 companies.
Reliance Industries with a market value of $50.9 billion (Rs 3.05 lakh crore) is
followed by State Bank of India, which is ranked 155 with a market value of $23
.6 billion (Rs 1.41 lakh crore).
The other Indian companies on t he l i st are ONGC (176), ICICI Bank (304), Tata
Motors (332), Indian Oil (416), HDFC Bank (422), Coal India ( 428), L& T ( 500)
, TCS ( 543), Bharti Airtel (625), Axis Bank (630), Infosys (727), and Bank of B
aroda (801), among others.
SBI, Tata trusts to train, fund rural poor (May 08, 2014)
State Bank of India and Tatas charitable trusts have signed an agreement to ident
ify, train and finance the initiatives of rural poor.

As per the agreement signed by Sir Dorabji Tata Trust & The Allied Trusts and th
e SBI, Tata trust will provide training and capacity building, identify partner
organisations such as farmer producer companies, SHGs and SHG Federations and pr
ovide implementation and technical support to make them sustainable. SBI would t
ake care of the need-based credit support by providing working capital and term
loans to partners promoted organisations of Tata trusts. This will improve financ
ial discipline among such borrower groups. Theres no concessional funding or gran
t involved, said an SBI official.

It is a partnership between the Tata trusts and SBI to make a lasting difference
to the rural poor, Tata Group Chairman Emeritus Ratan Tata said while signing the
MoU.

State Bank of India: Sets up Rural Self Employment Training Institutes (May 08,
2014)
One of the great challenges what our country is facing today is unemployment, mo
re particularly in rural areas. This is posing serious economic, social and poli
tical challenges forthe country. Rightly understanding its gravity, as a premier
banking institution of the nation, SBI is continuously attempting to address to
this issue through its various Banking operation.

As a multi corner approach to face this big challenge, SBI has set up Rural Self
Employment Training Institutes (RSETIs) across the country.

RSETIs are non-profit institutions established and maintained under Bank's Corpo
rate Social Responsibility activity with the support of State and Central Govern
ments.

The objective of this institute is to generate self employment in rural areas th
rough proper training and by facilitating in settlement in vocations.

RSETIs are imparting comprehensive quality training in personality and skill dev
elopment areas to the rural youth and it facilitates them in settlement in vocat
ions.

Settlement is facilitated by enabling the trained candidates to launch profitabl
e microenterprises either with or without the credit linkage from financial inst
itutions.

Also they are facilitated to secure wage employment in their skill areas elsewhe
re. As on date, SBI has established 116 RSETIs across the country and most of th
ese RSETIs have been established in geographically and socially challenging area
s.
SBI award Special Recognition Award in Employer Branding from Randstad (May 05,
2014)
State Bank of India was awarded Special Recognition Award in Employer Branding u
nder the Banking Sector category in India by Randstad, a global human resource c
onsultant.
The award was received by Arijit Basu, Chief General Manager, State Bank of Indi
a, Delhi in New Delhi on, April 16, 2014. The Randstad Award has been instituted
globally, to encourage best practices in building the Employer Brand.
Randstad Award survey measures the most attractive employer from over 150 leadin
g organisations in India across industry sectors.
SBI was awarded the best Employer Brand in the Banking Sector. The other nominee
s included HDFC Bank and Axis Bank.
SBI signs up Reliance Money Infra as business correspondent (Apr 30, 2014)
State Bank of India has signed up Reliance Money Infrastructure (RMIL), an Anil
Ambani Group company, in a business correspondent deal to source a range of bankin
g services.
The deal was concluded on February 25 but has been made effective with retrospec
tive effect from October 5, 2013.
SBI strategy The deal authorises RMIL to identify borrowers; collect, process, a
nd submit loan applications; promote credit groups; take up post-sanction monito
ring, follow- up, and recovery.
As the service provider, RMIL will also collect small-value deposits; sell micro
-insurance, mutual fund and pension products; and receive and deliver smallvalue
remittances.
An industry analyst called this a mother-of-all-business-correspondent agreement
, part of an SBI strategy to outsource listed services for facilitating business
growth. It is particularly significant since it comes after the latest round of i
ssuance of banking licences in which Reliance Capital, another group company, wa
s an applicant but failed to make the grade.
Products list Among products the service provider will dabble in are: no-frill s
avings bank accounts through kiosk banking model; home loans/loans against prope
rty; auto loans; gold loans; SME loans; general purpose credit card; kisan credi
t card; current account; savings bank account (other than no-frill account); ter
m deposit; recurring deposit; and mutual fund on a referral basis.
Additional products may be added by mutual consent.
Products may be also amended from time to time.
The agreement binds RMIL to the Fair Practices Code for lending as also its own
code for collection of dues.
In the absence of such a code, it should abide by the Indian Banks Association co
de for collection of dues and repossession of security.

SBI targets government agencies to push e-payment gateway (Apr 30, 2014)

The State Bank of India (SBI) plans to target government agencies and municipal
corporations for its newly launched payment gateway, which, it says, will bring
down transaction costs. Over the next three years, SBI plans to bring on board a
ll major public sector banks to use the payment gateway for their debit, credit
card and Internet banking transactions.
Launched last month, SBI ePay is an aggregator service from SBI, which provides
electronic connectivity with various banks and financial institutions, on the on
e hand, and merchants, on the other. The bank said it has already tied up with n
ine banks, including its subsidiaries like State Bank of Mysore and the State Ba
nk of Bikaner & Jaipur. So, for every transaction, a customer now has to pay a c
onvenience fee as is the case with online ticket booking. However, the services
to government agencies will come much cheaper, a senior SBI official said.
SBI plans to bring down the transaction cost so that the customers have to pay l
ess as compared to other gateways like Billdesk and CC Avenue.The online payment
scenario in India is still not very promising as a report by the Reserve Bank o
f India pointed out last week. The central bank said out of the 37 crore debit a
nd credit cards in the country, only 10-15% are used for online transactions.
Popular online aggregators include CCAvenue, PayU and Citrus Pay. Indian private
sector banks like ICICI Bank, Axis Bank and HDFC Bank also have such services.
However, no public sector bank has an aggregator yet. Every online merchant need
s to pay two kinds of charges to a payment gateway. It has to pay a one-time fee
and, apart from that, it needs to pay a maintenance fee every year. For SBI ePa
y, a customer will have the option of opting for silver, gold and platinum servi
ces depending on the kind of services they require.
The official said that SBI will charge more for payments made through credit car
ds as the chance of frauds is the highest there and, thus, the bank will earn mo
re commission from such payments.
SBI surged 3.2 per cent last week, closing higher for the tenth consecutive week
.
Immediate support for the stock is at Rs.2,040 and then at Rs.2,030.
The short-term trend will remain up as long as the stock trades above these supp
ort levels.
The stock is likely to move up to Rs.2,160 and Rs.2,180 levels in the coming wee
k.
Traders with a shortterm perspective can go long with a stop-loss at Rs.2,020.
The near-term outlook will turn negative only if SBI declines below Rs.2,030.
Such a break can drag it lower to Rs.1,950.
The medium-term outlook remains bullish with a double bottom on the chart.
The neckline support is at Rs.1,925.
Medium-term investors can hold the stock while retaining the stop-loss at Rs.1,6
50.
Intermediate declines to Rs.1,950-1,925 can be considered as a good opportunity
to accumulate more long positions.

SBI ladies club donates AC, fans to SEWA (Apr 28, 2014)
Krishna Kumar W/o A Krishna Kumar, managing director. State Bank of India and Sh
ailja Dubey, president, SBI Ladies Club, Lucknow with other members of the dub v
isited Self Employed Women's Association (SEWA) and donated 2 split Acs, 6 fans
and 2 umbrella making machines to the NGO. During the event Padam Shri Runa Bane
rjee, CEO, SEWA apprised about the various facets of 'SEWA' which is playing a k
ey role by helping the ladies engaged in the traditional art of thikankari'.
SBI ties up with Enable India (Apr 28, 2014)
State Bank of India has signed an MoU with Enable India, a not-for-profit organi
sation, to train persons with disabilities as part of its corporate social respo
nsibility activity. SBI will provide training to physically challenged persons s
elected by Enable India to be financially independent. "SBI will share rural sel
l employment training institutes (RSF lis) infrastructure to achieve a common go
al of enabling well being of most deserving section of the society," said SBI ch
airperson Arundhati Bhattacharya. Under RSCTI, SBI has trained 47,041 people in
11 months,
MF investments rise in banks & PSUs, fall in pharma & IT cos (Apr 26, 2014)
Mutual fund investments in banks and public sector units rose in the fourth quar
ter of 2013-14, while pharma companies and select IT firms saw a dip. Fund house
s increased their exposure in 14 banks, quarter-on-quarter analysis of sharehold
ing data of MF holding in 395 out of BSE 500 companies for the quarter ended Mar
ch shows. MF investment in public sector bank SBI rose by Rs 1,911 crore in the
quarter, highest among banks, Capitaline data show. HDFC Bank and ICICI Bank saw
their investment rising by Rs 1,446 crore and Rs 1,047 crore, respectively, in
the quarter.
SBI Life Reports Net Profit of Rs 740 cr in FY14 (Apr 25, 2014)
SBI Life has posted a 19% growth in net profit at Rs 740 crore in FY14.Its regu
lar new business premium increased by 14.5% to Rs 2,998 crore from Rs 2,618 cror
e in the previous year.
The individual new business premium annualised premium equivalent (APE) grew by
17.7% to Rs 2,809 crore.
Assets under management rose 12.7% to Rs 58,480 crore as on March 31 from Rs 51,
912 crore a year ago.
The company's expense ratio stood at 11.4%.
It said it had garnered new business market share of 17.2% among private players
in FY14
SBBJ Q4 Net Profit increases by 34% to Rs. 238 crores (Apr 25, 2014)
India not yet ready for differentiated banks: SBI (Apr 23, 2014)
It would be bit early to introduce differentiated banks model in the domestic con
text, SBIs research unit said.
While the universal banking model remains the dominant and preferred model across
the globe, there are countries, for example the US, Australia, Singapore, Hong
Kong (China) and Indonesia that offer differentiated banking licence.
We however, feel it would be bit early to introduce such a model in the domestic
context, SBI Research said in a report.
The RBI-constituted Nachiket Mor Committee for financial inclusion first mooted
the idea of having differentiated banks in the country.
The panels suggestions include specialised payment banks, retail banks, wholesale
banks, infrastructure banks, and so on.
Maintaining that time is not ripe for such a system, it said 40 per cent of Indi
as population falls into the financially excluded category, and highlighted not-s
o-encouraging experiences with the local area and regional rural banks in this r
egard.
The differential banking activity licences issued to RRBs and local area banks (L
ABs) could achieve limited success which prompted authorities to call for large
size banks to go for rapid financial inclusion in a time bound manner. It would b
e very difficult for a differentiated bank to survive by selling only one or two
products, it said.
Only the foreign lenders, which undertake niche business activities even though
they have a universal banking licence, could be possibly interested in different
iated licensing, SBI Research said.
SBI to lend $500 million, redeem securities worth $800 million (Apr 23, 2014)
State Bank of India, which raised $1.25 billion from foreign territories earlier
this month, will use a portion of the funds to repay securities that are coming
up for redemption; it will also extend credit facilities of about $500 million.
According to a senior SBI executive, the country's largest lender had issued bon
ds in the past and that would mature in the next few months.
The estimate of repayments is pegged at around $800 million, said the official. The
funds were raised because of two reasons.
One is business in the pipeline, as there are requests for loans to the tune of
$400-500 million. Those have to be met, the official added.
SBI had mopped $1.25 billion in overseas debt sale through a dual tranche bond p
rogramme.
Contrarian funds strike gold as SBI stock jumps 37% since Aug (Apr 16, 2014)
WITH the bull run in the equity market, long-only foreign funds that take contra
rian bets have been making a killing. A clear example is seen from the way large
institutional investors have dealt in the shares of State Bank of India, which
had crashed to a multi-year low in the first five months of FY14.
Contrarian player Norway- based Skagen, a foreign institutional investor registe
red with Sebi, raised its stake in SBI to a little over one per cent at the end
of 2013-14 from 0.7 per cent.
Other contrarian players in the domestic funds industry such as HDFC Mutual Fund
and Life Insurance Corporation of India also raised stake in SBI taking advanta
ge of prevailing low share price during the greater part of the year.
Today long-only funds sit on huge profit due to their bottom picking in SBI shar
es.
SBI shares have outperformed the market during the last seven-and-a-half months,
rising by 37.26 per cent from its low of Rs 1,452.90, which it hit on August 28
, 2013.
On Friday, SBI closed at Rs 1,994.30 on BSE, after it hit an intra-day high of R
s.2,038, triggering profit booking.
Winds of change: PSBs outperform private banks in March (Apr 16, 2014)
State-owned banks have outperformed their private peers in the last one month, w
ith the CNX PSU Bank index gaining more than 17% against 4.35% returns clocked b
y Bank Nifty.
Among state-owned lenders, shares of Union Bank of India (34.43%), PNB (22.20%),
SBI (18.73%), Allahabad Bank (15.49%), Oriental Bank of Commerce (15.08%), Bank
of Baroda (14.64%) and Canara Bank (12.99%) have been the major gainers. Among
private players, only Yes Bank and Federal Bank have gained more than 10% in the
last one month, as per data on Bloomberg.
Recently, US brokerage Goldman Sachs said it believes that the expected recovery
in economy would address the asset quality concerns surrounding PSU banks. We ha
ve favoured private banks over public sector banks for the past three years on c
oncerns about stressed assets and low capital adequacy ratios (CAR) for PSUs. Ho
wever, macro recovery and potential for post-election reforms should see a gradu
al reduction in stressed loans on lower slippages and higher recoveries, the brok
erage said and upgraded PNB, Bank of Baroda and State Bank of India.