Tag: sbi news

Profit may double, NIM likely in 3-3.1% range, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


NEW DELHI: State Bank of India (SBI) may report up to 100 per cent surge in net profit for September quarter on a marginal rise in net interest income (NII). Net interest margin (NIM) is seen healthy at 3-3.1 per cent. Analysts said healthy NIM, recovery from DHFL and lower loan loss provision should lead to strong profitability, which may partly be offset by the hit on NPS/pension for retired personnel.

Slippages should remain moderate, with limited NPAs in retail, said Emkay Global, which said the stress in SME could be taken out via restructuring.

This brokerage is expecting the bank to report 58.5 per cent YoY rise in net profit at Rs 7,249.80 crore compared with Rs 4,574.20 crore in the same quarter last year. It sees NII rising 2.4 per cent to Rs 28,856.30 crore from Rs 28,181.50 crore YoY. NIM is seen at 3 per cent compared with 2.9 per cent in June quarter and 3.1 per cent in the year-ago quarter.

Nirmal Bang Institutional Equities is pegging profit at Rs 7,646.60 crore, up 67.2 per cent YoY. NII is seen growing 3.8 per cent YoY to Rs 29,263.30 crore. Pre-provision profit is seen at Rs 18,792.30 crore, up 14.2 per cent.

The bank is seen reporting a loan growth of 8.1 per cent YoY to Rs 24,80,546.20 crore and deposit growth of 8.6 per cent at Rs 37,69,359.80 crore. Credit cost is seen at 1.4 per cent.

“SBI should continue to report better NII growth of 3.5 per cent YoY, loan growth of 8 per cent on lower interest reversals. We build higher slippages from Agri and SME segments, while we build in recovery from DHFL,” Prabhudas Lilladher said.

This brokerage is expecting a 102 per cent surge in profit at Rs 9,263 crore. It sees NIM at 3.05 per cent while gross NPA is seen at 5.83 per cent.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

SBI to auction two NPA accounts to recover dues of over Rs 313 cr, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


NEW DELHI: SBI will auction two non-performing accounts (NPAs) next month to recover dues of over Rs 313 crore, according to a notice by the lender.

The two accounts to be put up for e-auction on August 6 are Bhadreshwar Vidyut Pvt Ltd (BVPL) with a loan outstanding of Rs 262.73 crore and GOL Offshore Ltd with Rs 50.75 crore dues.

“In terms of the bank’s policy on sale on financial assets, in line with the regulatory guidelines, we place these accounts for sale to ARCs/banks/NBFCs/FIs, on the terms and conditions indicated there against,” SBI said in the notice.

The reserve price for the auction of Bhadreshwar Vidyut is set at Rs 100.12 crore and for GOL Offshore at Rs 51 crore.

SBI has asked the interested parties to do the due diligence of these assets with immediate effect, after submitting expressions of interest and executing non-disclosure agreement with the bank.

“We reserve the right not to go ahead with the proposed sale at any stage, without assigning any reason. The decision of the bank in this regard shall be final and binding,” SBI said.

BVPL was set up in 2007 as a special purpose vehicle promoted by OPG group, having substantial experience in power and steel sectors. In April 2019, ICRA moved the long term rating on bank facilities to the tune of Rs 2,062.40 crore to the company to ‘Issuer Not Cooperating’ category.

ICRA said it had been trying to seek information from the company to monitor its performance, but despite repeated requests, the management of the company remained non-cooperative. It had also advised lenders and investors of the company to exercise appropriate caution while using the rating action as it might not adequately reflect the credit risk profile of the company.

The Mumbai based GOL Offshore is engaged in the business of providing services to oil and gas extraction, excluding surveying.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , , , , , ,

SBI to consider raising $2 billion via bonds, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


NEW DELHI: The country’s largest lender State Bank of India (SBI) on Tuesday said a committee of its central board will consider raising up to USD 2 billion (around Rs 14,942 crore) through bonds in this fiscal year. The Executive Committee of the Central Board is scheduled to have a meeting on April 28, 2021, the bank said in a BSE filing.

The committee will examine “the status and decide on long term fund raising in single / multiple tranches up to USD 2 billion through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY 2021 – 22”, the filing said.

SBI shares ended at Rs 352.9, up by 2.5 per cent, on BSE.

Follow and connect with us on , Facebook, Linkedin



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

SBI Card plans to raise Rs 2,000 crore via NCDs

Personal Finance

[ad_1]

Read More/Less


Credit Suisse also expects strong growth for SBI Card. “We expect growth to remain strong (> 30% in spends) as it raises penetration within SBI customers,” Credit Suisse said.

SBI Cards and Payment Services (SBI Card) on Monday said it was planning to raise up to Rs 2,000 crore by issuing non-convertible debentures (NCDs). The company has called a meeting of the board of directors on March 12 to consider and approve raising of funds, which will be raised in one or more tranches over a period of time, it said. This will be a second announcement of fund-raising via NCDs within a month, after it had raised Rs 550 crore in February.

Last month, SBI Cards had informed that it had raised Rs 550 crore through issuing NCDs on a private placement basis. The NCDs have a tenure of three years with a coupon rate of 5.9% per annum. The company had announced fund-raising after new MD and CEO Rama Mohan Rao Amara took over in January 2021.

The company had reported a 52% year-on-year fall in its net profit to Rs 210 crore during the December quarter (Q3FY21). Its total income stood at Rs 2,540 crore during the quarter, against Rs 2,563 crore in the year-ago period. The capital adequacy ratio was at 23.7%, compared to the minimum regulatory requirement of 15%. On a proforma basis, gross non-performing assets (NPAs) stood at 4.51%, compared to 7.46% in the September quarter. The Supreme Court had earlier directed lenders to not declare any fresh NPAs after August 31, 2020. Therefore, lenders had disclosed NPAs on a proforma basis to reflect the true picture of asset quality.

In a recent report, Credit Suisse said the asset quality stress for SBI Card had peaked. The company has seen an increase in stress post Covid-19, with proforma slippage of 8%, and 10% of loans being restructured, Credit Suisse said. “Given strong pre-provision profitability, while it has provided 65% on pro-forma NPAs as well as 35% on restructured loans, FY21E RoAs (return on assets) are likely to be around 4%,” it said.

Credit Suisse also expects strong growth for SBI Card. “We expect growth to remain strong (> 30% in spends) as it raises penetration within SBI customers,” Credit Suisse said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , ,