Tag: sbi

CEA to bankers: If you want books in order then let your ‘karma’ be driven by your ‘dharma’

Banking & Finance

[ad_1]

Read More/Less


His comments in relation to governance in banks also add weight given that Subramanian has also previously served as a member of the P J Nayak Committee on governance of banks for RBI and the Uday Kotak Corporate Governance Committee of SEBI.

It was a memorial lecture in honour of a legendary banker remembered for his practices guided by ethical behaviour and Krishnamurthy V Subramanian, the chief economic adviser, government of India, left no stone unturned to drive home the importance of abiding by core values of staying highly principled. He was delivering the 11th R K Talwar memorial lecture organised by the Indian Institute of Banking and Finance. Raj Kumar Talwar headed the State Bank of India (SBI) between 1969 and 1976 and continues to be regarded as a highly principled banker.

Responding to a question on what bankers need to learn of governance given the current challenges in the banking sector with reports of bank failures and banks constrained by rising non-performing assets, he urged bankers to be guided by their dharma. Pointing to the latest economic survey, he said, it has a chapter of regulatory forebearance. As a result of the forebearance, he said, not only did the zombie lending happen in the banking sector but also there was the labelling of non-performing assets as restructured assets adding to the problems.

Referring to R K Talwar and his principles and stature, he said, were Talwar to be heading any of the banks today, it would have done none of this and stuck to right conduct and would have had the moral courage to lend right and paint a true picture of the balance sheet and be very transparent when it came to making disclosures on bank performance.“Such people (like Talwar) don’t need incentives and just do the right thing because that is what their dharma demands and their karma is driven by their dharma,” he said.

His comments in relation to governance in banks also add weight given that Subramanian has also previously served as a member of the P J Nayak Committee on governance of banks for the Reserve Bank of India and the Uday Kotak Corporate Governance Committee of Securities and Exchange Board of India. The latest Economic Survey that he referred to talks in detail about the P. J. Nayak Committee (2014), constituted by RBI, and says it “highlighted in its report submitted in May 2014 the twin concerns stemming from the forbearance regime: ever-greening of loans by classifying NPAs as restructured assets and the resultant undercapitalization of banks.” It also goes on to say that “once the forbearance policy was discontinued in 2015, RBI conducted an Asset Quality Review to know the exact amount of bad loans present in the banking system. As a result, banks’ disclosed NPAs increased significantly from 2014-15 to 2015-16. In the absence of forbearance, banks preferred disclosing NPAs to the restructuring of loans.”

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 , , , , , , ,

RBI report, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Consumer complaints about banking services jumped 57 per cent to 3.08 lakh for the year to June 30, 2020, the Reserve Bank said on Monday. In its annual report on Ombudsman Schemes, the central bank said over a fifth of the complaints were about services at ATMs or with debit cards, followed by mobile or electronic banking at 13.38 per cent. Non-observance of Fair Practices Code (FPC) was at third place.

Complaints received regarding credit cards, failure to meet commitments, levy of charges without notice, loans and advances and non-adherence to the Banking Codes and Standards Board of India (BCSBI) norms increased this year as compared to previous year.

The number of complaints pertaining to ‘Direct Sales Agent (DSA) and recovery agents’ increased from 629 complaints in 2018-19 to 1,406 this year, it said.

The disposal rate declined marginally to 92.36 per cent, as against 94.03 per cent in 2018-19 as the surging complaints had to be handled by the same number of staff, it said.

On the non-bank finance companies front, there was a 386 per cent jump in the number of complaints received by the Ombudsman Scheme for Non-Banking Financial Companies at 19,432 and the disposal rate stood at 95.34 per cent.

The Ombudsman Scheme for Digital Transactions handled 2,481 complaints during the year with a maximum 43.89 per cent being related to non-adherence of RBI code for payment transactions.

Deputy Governor M K Jain said the year was a challenging one for the financial consumers vulnerable to the adverse consequences of the pandemic and commended the Ombudsmen offices for being functional through the difficult period.

He also said the RBI will strive to improve the disposal rate going forward.

Governor Shaktikanta Das had last week announced a plan to integrate all the three offices (banks, NBFCs, digital payments) into a single ombudsman for the country.

The share of SBI and nationalised banks in the consumer complaints decreased to 59.65 per cent as against 61.90 per cent, on the back of a surge in the share of private banks.

SBI had the largest share among lenders in the number of maintainable cases disposed at 48,333, followed by HDFC Bank at 15,004, ICICI Bank at 11,844 and Axis Bank at 10,457.

The turnaround time for complaints went up to 95 days from the 47 days in the year-ago period, and stood at 45 days for the January-June 2020 period, it said.

The Chandigarh office led when it came to maintainable complaints in 2019-20 with 30,574 concerns as against under 21,000 complaints across two ombudsmen offices in Mumbai and about 29,000 in New Delhi.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,

SBI chairman calls for deployment of technology in RRBs

Banking & Finance

[ad_1]

Read More/Less


The Regional Rural Banks (RRBs) should adopt modern technology, Dinesh Kumar Khara, Chairman, State Bank India (SBI) said.

He was speaking after formally launching Digital Insta Savings Account (DISA) Mobile App of Andhra Pradesh Grameena Vikas Bank (APGVB) and Telangana Grameena Bank (TGB).

The video-Know Your Customer (KYC) facility will also be shortly launched in RRBs, he said.

“APGVB & TGB are amongst the most progressive RRBs in the country and better than small finance banks with a brand, reach, network and fair understanding of risks we are working in,’’ he said.

While explaining the features of (DISA) K Praveen Kumar, Chairman, APGVB and V Arvind, Chairman, TGB, said instant account could be opened within 10 minutes with facilities such as zero balance, immediate activation of mobile banking and Rupay Debit card, according to a release.

[ad_2]

CLICK HERE TO APPLY

6 Comments , , , , , ,

‘Expect double digit credit growth by Q2FY22’: Dinesh Kumar Khara, chairman, State Bank of India

Personal Finance

[ad_1]

Read More/Less


I think at the end of the financial year 2021 (FY21), our credit growth should be around 7%.

The country’s largest lender, State Bank of India (SBI), expects a double-digit credit growth by the second quarter of financial year 2022 (Q2FY22). In an interaction with media after earnings, SBI’s chairman Dinesh Kumar Khara said the bank is expecting around 7% credit growth at the end of the current financial year (FY21). Khara also said that lender will not require any more provision for transferring of the asset to an asset reconstruction company (ARC) proposed in the Union budget. Excerpts:

Given there is a proposal to transfer the bad loans to a national asset reconstruction company (ARC), will any additional provisioning be required?
We are already having provisioning coverage ratio (PCR) of more than 90%. As and when it materialises, I don’t expect we will require any additional provisioning. In any case the modalities of the valuation at which the assets will be transferred is yet to be firmed up, and that is being discussed and deliberated. Once we have a clarity on that, we will have even a firmer picture. But I would say, considering the fact that even in our corporate advance book also, our PCR is as high as 87-88%, so I do not think we will require any more provision before we transfer any of the asset to an ARC and asset management company (AMC).

Can you break down your proforma slippages? Will you be able to contain your total slippages at `60,000 crore as per your earlier guidance?
In aggregate we have received Rs 18,000 crore restructuring applications. Around Rs 3,900-crore restructuring requests have come from the retail personal segment, around Rs 2,500 crore from small and medium enterprises (SME) and around Rs 11,000 crore from the corporate segment. Proforma slippages at nine months ending December 2020 remained at Rs 16,461 crore and the total restructuring requests till December 2020 are at Rs 18,125 crore. So, put together total slippages and restructuring up to Q3FY20 remained at Rs 41,216 crore. For the whole financial year, total slippages and restructuring at the end of financial year (FY21) should remain within Rs 60,000 crore.

What is your credit growth target at the end of financial year 2021 (FY21)?
I think at the end of the financial year 2021 (FY21), our credit growth should be around 7%.

Last quarter you said that SBI’s credit growth would be around 8-9%, have you revised that due to subdued corporate credit growth?
Corporate loans are subdued even now. We would see growth coming from the public sector entities’ capital expenditure. That is why I have indicated credit growth more in the range of 7%, considering the fact that only two months are left for the financial year. So, earlier we had indicated 8%, which is now deferred to 7% credit growth.

By when do you expect double digit credit growth for SBI?
I would expect from the second quarter of financial year 2020 (Q2FY22) onwards, we should be able to see double-digit credit growth.

You said that SBI expects pick-up in the corporate loan book. What gives you confidence for that?
The reason for the confidence is that if at all there is going to be infrastructure spend, the way it has been indicated in the Budget, there is going to be a definite improvement in the economic activity in the core sector which is iron and steel, cement, and construction sector. So, actually that will lead to the demand generation.

Will you revise your credit cost guidance of 2%? Where do you stand now?
As the situation stands, we should be able to keep the credit cost much lower than 2%. Even with the proforma slippages, our credit cost at the end of Q3FY20 stands at 1.1%. So, I think we should be much better than our own guidance of 2% credit cost.

After government has announced increasing the foreign direct investment (FDI) limit in the insurance sector to 74% from 49%, will your foreign partner in the insurance subsidiaries look to increase stake?
The provisions announced in the Budget says that foreign investment is permitted, but the ownership still continues with the Indian owners. At least they will have 51% ownership. As of now we do not have any such plan. May be going forward, we will evaluate at the material point of time. To my mind, as of now there is no change in the policy-thinking of the insurance subsidiaries.

Union Budget has proposed a new Development Finance Institution (DFI). Given that SBI is a large player in the project finance space, do you see any need for re-strategising as the whole idea is to take the burden of the infrastructure financing from the banking system?
It is a very welcome step announced by the Finance Minister (FM) for setting up of DFI to support infrastructure needs of the country. I would say there is an ample room for other institutions to play in this space. This space will continue to be open for us. As the market evolves, there would be situation where such loans would be subject to secondary market also. So, I think we will have enough space to grow in this particular segment. And, we perceive it as an opportunity for us to have excellent players in the space and to cater to the needs, because infrastructure needs of the economy are going to grow like anything. So, for that many more players are required.

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 , , ,

SBI net profit drops 7% to ₹5,196 crore

Banking & Finance

[ad_1]

Read More/Less


State Bank of India (SBI) reported a 7 per cent decline in standalone net profit at ₹5,196 crore in the third quarter ended December 31, 2020, as against ₹5,583 crore in the year ago quarter.

Though bad loan provisions came down 72 per cent year-on-year to ₹2,290 crore, the bottomline was weighed down by increase in overall provisions, including additional provisioning towards the Covid-19 related impact, and rise in employee expenses arising out of 11th bipartite wage settlement.

Net interest income (difference between interest earned and interest expended) nudged up 4 per cent to ₹28,820 crore.

Other income comprising total fee income, dividend income, trading gains, recovery from technically written-off accounts, edged up about 1.5 per cent yoy to ₹9,246 crore.

Bad loans decline

GNPAs declined to 4.77 per cent of gross advances as at December-end 2020 against 6.94 per cent as at December-end 2020.

Net NPAs declined to 1.23 per cent of net advances as at December-end 2020 against 2.65 per cent as at December-end 2020.

With proforma slippages (adjusted for the Supreme Court’s interim order), Gross and Net NPA ratio would have been 5.44 per cent and 1.81 per cent, respectively.

[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

SBI Q3 standalone net falls 7 pc to Rs 5,196 cr, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


Country’s largest lender State Bank of India (SBI) on Thursday posted nearly 7 per cent fall in its standalone net profit at Rs 5,196.22 crore for the third quarter ended December. The bank had posted net profit of Rs 5,583.36 crore in the October-December period of the previous fiscal.

Total income (standalone) also fell marginally to Rs 75,980.65 crore during Q3FY21, as against Rs 76,797.91 crore in the same period of 2019-20, SBI said in a regulatory filing.

On a consolidated basis, the bank posted a 5.8 fall in net profit at Rs 6,402.16 crore during the quarter under review, as against Rs 6,797.25 crore in the year-ago period.

The bank’s asset quality improved substantially as the gross non-performing assets fell to 4.77 per cent of the gross advances as of December 31, 2020 from 6.94 per cent in the corresponding period a year ago.

In value terms, the gross NPAs or bad loans stood at Rs 1,17,244.23 crore, as against Rs 1,59,661.19 crore.

Likewise, the net NPAs were down 1.23 per cent at Rs 29,031.72 crore, as against 2.65 per cent (at Rs 58,248.61 crore).

Provisions for bad loans and contingencies for the quarter spiked to Rs 10,342.39 crore, from Rs 7,252.90 crore a year earlier.

The shares of SBI were trading 2.02 per cent up at Rs 342.65 apiece on BSE.



[ad_2]

CLICK HERE TO APPLY

One comment , , , ,

Bank Nifty constituents hit new highs after Budget 2021, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


by Syed Fasiuddin

Bank Nifty constituents hit new highs shortly after Finance Minister Nirmala Sitharaman announced her budget for 2021. The Bank Nifty, since the announcement of the budget, which included numerous reforms aimed towards the BFSI sector, including the setting up of a bad bank, amendments towards the Insurance Act of 1938, the recapitalisation of public sector lenders, and the proposed divestment of two public lenders and one general insurer, amongst others, sparked cheer in the market – recording a 3074 point jump.

Public Bank stocks jump
Government owned lenders and constituents of the Bank Nifty Index – including the State Bank of India, Punjab National Bank (PNB), Bank of Baroda, recorded sharp single and double digit rises in values since February 1, when the budget was first announced. SBI within the day recorded a spectacular jump of 7.21%, closing at Rs 333.10 – rising by Rs 22.40. PNB and BoB recorded jumps of 1.26% and 1.01%, respectively, on February 2. PNB at the end of day traded at Rs 36.20, whilst BoB traded at Rs 74.65 – rising by 0.45 and 0.75 points, respectively.

Private lender stocks cheer
Private lenders RBL Bank, Federal Bank, HDFC Bank and Bandhan Bank recorded the highest jumps since the budget was first announced, rising by 11.52%, 10.08%, 9.9% and 9.84% respectively. RBL Bank recorded a jump of 25 points, closing at RS 242.00 at the end of market hours. HDFC Bank alone rose by 140.9 points, trading at Rs 1560, since the budget was announced, whereas Bandhan Bank rose by 30.40 points, to close at Rs 339.35, on February 2. Kerala based Federal Bank also recorded a 7.35 point jump to trade at Rs 80.25 by the close of the BSE.


Other constituents of the Bank Nifty, including ICICI Bank, Kotak Mahindra Bank and Axis Bank, recorded similar gains, jumping by 9.61%, 8.47% and 8.13%, respectively. ICICI Bank rose by 54.20 points to close at Rs 618.45, whereas Kotak Mahindra Bank and Axis Bank recorded an increase of 145.50 points and 53.65 points, respectively, to close at Rs 1863.50 and Rs 713.70.

Bankers remain optimistic
Both public and private bankers expressed optimism at the budget unveiled by Nirmala Sitharaman, on February 1. Dinesh Kumar Khara, Chairman of the State Bank of India (SBI), said “The Union Budget has unveiled a set of well-crafted and robust policies that encompasses the vision of an Atmanirbhar Bharat. The Budget has rightly envisaged a substantial jump in capital expenditure that has a strong multiplier impact on the economy. The decision to open up the insurance sector, setting up a DFI and an ARC, privatizing a couple of public sector banks are all positive steps for the financial sector.”

The Chairman of India’s largest lender further said “One of the cornerstones of this budget is fiscal numbers that are transparent and has the potential to surprise us on the upside. In principle, the budget has rationalized the off-balance-sheet borrowings and headline fiscal deficit numbers, which will overtly please markets and even rating agencies. The fact that the expenditure announcements in the budget have been matched with the status quo on taxes will please everyone and bolster market sentiments.”

Kotak Mahindra Bank founder Uday Kotak, expressing his views on the budget, tweeted “A Budget for growth with next-gen reforms. Focus on healthcare, infra, financial sector. A stable tax regime, higher borrowings for capex. Specific reforms: disinvestment & monetization, opening up of insurance, cleanup plan for stressed assets. Sign of a self confident India.”

Chandra Shekhar Ghosh, MD & CEO, Bandhan Bank, noted “The government has prioritised spending on growth at this stage, in the hope that such growth would help manage the fiscal deficit subsequently. A substantial increase announced in the expenditure on healthcare and infrastructure will help boost economic growth, including the MSME sector and generate employment. Overall, it was a growth-centric Budget aimed at securing India’s long-term economic interest.



[ad_2]

CLICK HERE TO APPLY

5 Comments , , , , , , ,

SBI launches a 4 day sale on YONO, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


SBI has announced a sale offer for its 34.5 Million plus registered users on its banking and lifestyle platform, YONO. The sale will go live on February 4 and will continue till February 7.

The four days unique shopping carnival will offer an exclusive range of discounts and cashback on various categories including electronics, furniture, travel, hospitality, online shopping.

The Bank has partnered with more than 100 e-merchants including Amazon, OYO, Pepperfry, Samsung, and Yatra. During the sale, SBI customers can avail up to 50% off on hotel booking with OYO, 10% discount on flight booking with Yatra.com, 15% discount on Samsung mobiles, tablets and watches along with other exclusive benefits and many more.

CS Setty, MD (Retail & Digital Banking), SBI said, “To add further cheer and optimism this new year, we are glad to announce the YONO Super Saving Days for our customers. This special initiative by the bank is a step ahead to fulfill the shopping needs of our customers through YONO with attractive deals and discounts in an array of shopping categories. We look forward to witnessing wholehearted participation in this mega shopping event exclusively designed for our valuable YONO users.”



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

Rama Mohan Rao Amara takes charge as the MD & CEO of SBI Card, BFSI News, ET BFSI

Banking & Finance

[ad_1]

Read More/Less


SBI Card has appointed Rama Mohan Rao Amara as Managing Director and Chief Executive Officer.

Rao takes over from Ashwini Kumar Tewari who has been appointed as MD at State Bank of India.

SBI Card in a statement said, “Rama Mohan Rao Amara is a veteran banker, with a successful career spanning over 29 years at the State Bank of India. Prior to taking charge at SBI Card, Mr. Rao was the Chief General Manager, SBI Bhopal Circle, where he managed two key states MP & Chhattisgarh.”

Ashwini Kumar Tewari, MD at State Bank of India said, “We are pleased to welcome Mr. Rama Mohan Rao Amara as the MD & CEO of SBI Card. He has exhibited reliable and proficient leadership, while managing key assignments across India and abroad. His vision and strategic approach would be a key enabler to lead the rapidly growing credit card business. We are confident that he will be able to further strengthen SBI Card’s position and thereby increase value for all stakeholders.”

On his appointment, Rama Mohan Rao Amara, MD & CEO, SBI Card said, “It is an exciting time to join SBI Card. The Indian economy is slowly but surely coming out of the grip of the pandemic. With a renewed focus towards cashless and digital payments, the country is firmly on the path to becoming a digital economy. Moreover, the Indian credit card market continues to present significant growth potential due to its favourable demographic changes and extremely low credit card penetration rate. SBI Card is known and respected as a customer centric, resilient, and nimble organization. I look forward to leading the organisation to newer heights.”

Rao had started his banking career with SBI in 1991 as a probationary officer and has expertise in field of credit, risk, and international banking. He has held two foreign posting in Singapore and later in US as CEO of Chicago branch and then as President and CEO of SBI California and has also served as CGM – Financial Control at SBI’s Corporate Centre in Mumbai.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , ,

SAT asks LIC, SBI, Bank of Baroda to develop protocols to comply with securities laws, BFSI News, ET BFSI

Personal Finance

[ad_1]

Read More/Less


MUMBAI: In a firmly-worded order, the Securities Appellate Tribunal urged state-owned enterprises to form protocols to comply with applicable laws and regulations.

“It is necessary that governmental entities, including public sector undertakings, need to develop protocols for coming out from being prisoners of protracted procedures for complying with applicable laws and regulations timely, because as legal entities accountability falls on them,” the Tribunal said.

The Tribunal said that all rules and regulations should be equally applicable to every legal entity irrespective of its ownership. “Only such an approach would bring in clarity and certainty to laws and regulations and a predictable rule of law regime,” it added.

SAT’s advise takes prominence in the context of concerns that the capital market rules are not applied in the same spirit to public sector undertakings as they are to private sector listed companies.

The Tribunal was presiding over an appeal made by Life Insurance Corp of India, Bank of Baroda and State Bank of India against a Securities and Exchange Board of India (Sebi) order against them with respect to violations of certain mutual fund norms.

In August, the capital market regulator had imposed a fine of Rs 10 lakh each on the three appellants for violating SEBI’s mutual fund regulations, under which a sponsor of one mutual fund cannot hold a more than 10 per cent stake in another mutual fund.

LIC, SBI and Bank of Baroda each have their own mutual funds but also hold significant stakes in UTI Asset Management Co.

SAT has turned the monetary penalty for the three state-owned entities into a warning as it found no “justifiable” reasons to impose a monetary penalty on the violators.

“In these matters, a warning is sufficient. Further, SEBI is at liberty to impose penalty for similar violations in future,” the Tribunal said.



[ad_2]

CLICK HERE TO APPLY

Leave a comment , , , , ,
1 … 22 23 24 25