Tag: SBI shares

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

Banking & Finance

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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.



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

Banking & Finance

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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.



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D-Street investors’ wealth jumps by Rs 2.19 lakh cr in 2 days, BFSI News, ET BFSI

Personal Finance

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NEW DELHI: Investors’ wealth has jumped by Rs 2.19 lakh crore in two days of market rally, with the market capitalisation of BSE-listed companies reaching a fresh record of Rs 2,31,74,726 crore.

Gaining for the second straight session, the 30-share BSE Sensex closed 395.33 points or 0.75 per cent higher at 52,880 on Monday. The benchmark had closed 166.07 points higher on Friday.

Following the buoyant sentiment, the market capitalisation of BSE-listed firms zoomed Rs 2,19,283.79 crore in two days to its all-time high of Rs 2,31,74,726 crore.

“Overall sentiment were positive on account of fall in COVID-19 infections and indications of more availability of vaccines. Hopes of a sustained reopening of the economy led to buying in sectors which were most affected by COVID,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

In Monday’s trade, State Bank of India was the biggest gainer in the 30 frontline companies pack, gaining 1.92 per cent, followed by Tata Steel, L&T, Bajaj Finserv, Larsen & Toubro and Axis Bank.

In contrast, Tech Mahindra, Dr Reddy’s, HCL Tech, Titan, Bharti Airtel and TCS were the laggards, falling up to 1.34 per cent.

In the broader market, the BSE mid-cap and small-cap indices gained up to 0.78 per cent.

From sectoral indices, only power closed lower, while realty topped the chart with a gain of 2.84 per cent, followed by metal at 1.49 per cent.



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

Banking & Finance

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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.

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