The State Bank of India Chairman O P Bhat today indicated that there was scope for the bank to cut both the deposit and lending rates by 25 basis points.
Speaking on the sidelines of a conference to announce the launch of the SBI Research Cell for Public Sector Leadership at the Indian Business School in Hyderabad, he, however, did not give any fixed time frame for the cuts.
Mr Bhat's remarks comes close on the heels of the RBI and the Central Government urging for the banking sector to cut their lending rates further to increase the flow of credit to the productive sector during the current slow growth rate.
Union Finance Minsiter Pranab Mukhjerji would be meeting the bankers in New Delhi on June 10.
Showing posts with label SBI. Show all posts
Showing posts with label SBI. Show all posts
Thursday, June 4, 2009
Syndicate Bank ties up with SBI Life
SBI Life Insurance, India’s largest private life insurance company, and Public Sector Syndicate Bank have tied-up to offer housing loan insurance cover to the borrowers from the bank.
As per the agreement, SBI Life would provide insurance cover to Syndicate Bank’s home loan customers, who have availed loan under the special scheme announced by Indian Bankers Association (IBA) and the Centre.
Under the special scheme, effective up to June 30, home loan customers, between age group of 18 to 55 years, availing a loan upto Rs 20 lakh, would be eligible for home loan cover at no extra cost.
The housing loan cover, premium of which would be borne by the bank, would not involve any documentation, according to a release here today.
Speaking on the occasion, SBI Life Insurance MD and CEO U S Roy said, ''we are confident that the tie-up would further enhance accessibility of our home loan protection product which covers the borrower’s family from the outstanding loan and ensures retention of the property, in case of any unforeseen incident.'' Syndicate Bank Executive Director R Ramachandran said, ''the tie-up would go a long way in creating a synergy of benefit to the customers of the bank and also to the Life Insurance company. The simplicity of the product and SBI Life’s expertise in providing such products will prove beneficial for our customers.'' '' The bank expects that the tie-up will further spur the demand for housing loans and also help in increasing the number of housing loan disbursements under this special package scheme,'' he added.
As per the agreement, SBI Life would provide insurance cover to Syndicate Bank’s home loan customers, who have availed loan under the special scheme announced by Indian Bankers Association (IBA) and the Centre.
Under the special scheme, effective up to June 30, home loan customers, between age group of 18 to 55 years, availing a loan upto Rs 20 lakh, would be eligible for home loan cover at no extra cost.
The housing loan cover, premium of which would be borne by the bank, would not involve any documentation, according to a release here today.
Speaking on the occasion, SBI Life Insurance MD and CEO U S Roy said, ''we are confident that the tie-up would further enhance accessibility of our home loan protection product which covers the borrower’s family from the outstanding loan and ensures retention of the property, in case of any unforeseen incident.'' Syndicate Bank Executive Director R Ramachandran said, ''the tie-up would go a long way in creating a synergy of benefit to the customers of the bank and also to the Life Insurance company. The simplicity of the product and SBI Life’s expertise in providing such products will prove beneficial for our customers.'' '' The bank expects that the tie-up will further spur the demand for housing loans and also help in increasing the number of housing loan disbursements under this special package scheme,'' he added.
Sunday, May 10, 2009
SBI net profit up 35.5 percent in 2008-09
State Bank of India (SBI), the country's largest lender, has posted a net profit of Rs.9,121 crore for 2008-09 as against Rs.6,729 crore the year before, a rise of 35.5 percent.
"Net profit for the fourth quarter (January-March) of 2008-09 increased 45.62 percent to Rs.2,742 crore from Rs.1,883 crore in the corresponding quarter of 2007-08," SBI chairman O.P. Bhatt told reporters here.
The net non-performing asset (NPA) ratio for 2008-09 stood at 1.76 percent, compared to 1.78 percent in 2007-08. The total amount restructured during the year was Rs.8,310 crore.
The capital adequacy ratio of the bank is above 14 percent, he said.
The net interest margin (NIM) was at 2.93 percent as on March 31, 2009, compared to 3.07 percent in March 2008.
SBI's total income for the fiscal rose 33 percent to Rs.76,479.2 crore from the previous year's Rs.57,645.2 crore.
Consolidated net profit was at Rs.10,955.2 crore, a 22 percent increase from Rs.8,960.6 crore in 2007-08.
The group's consolidated net income crossed the trillion rupee mark to Rs.113,093 crore (Rs.1.1 trillion) in 2008-09, 25 percent up from the previous fiscal's Rs.90,218.8 crore.
Asked about the impact of the economic downturn, Bhatt said: "The worst is over for the economy. Auto and housing loans have started picking up already."
On the overseas operations of the bank, he said SBI would concentrate on "consolidating the existing business network". The bank is already present in 33 countries.
SBI has plans to increase its Singapore operations from the present five branches to 12 this year and to 20 next fiscal.
Asked about its plans of starting general insurance business, Bhatt said: "We hope to start it anytime within this calendar year or latest by this fiscal end. We are yet to receive some final approvals."
"Net profit for the fourth quarter (January-March) of 2008-09 increased 45.62 percent to Rs.2,742 crore from Rs.1,883 crore in the corresponding quarter of 2007-08," SBI chairman O.P. Bhatt told reporters here.
The net non-performing asset (NPA) ratio for 2008-09 stood at 1.76 percent, compared to 1.78 percent in 2007-08. The total amount restructured during the year was Rs.8,310 crore.
The capital adequacy ratio of the bank is above 14 percent, he said.
The net interest margin (NIM) was at 2.93 percent as on March 31, 2009, compared to 3.07 percent in March 2008.
SBI's total income for the fiscal rose 33 percent to Rs.76,479.2 crore from the previous year's Rs.57,645.2 crore.
Consolidated net profit was at Rs.10,955.2 crore, a 22 percent increase from Rs.8,960.6 crore in 2007-08.
The group's consolidated net income crossed the trillion rupee mark to Rs.113,093 crore (Rs.1.1 trillion) in 2008-09, 25 percent up from the previous fiscal's Rs.90,218.8 crore.
Asked about the impact of the economic downturn, Bhatt said: "The worst is over for the economy. Auto and housing loans have started picking up already."
On the overseas operations of the bank, he said SBI would concentrate on "consolidating the existing business network". The bank is already present in 33 countries.
SBI has plans to increase its Singapore operations from the present five branches to 12 this year and to 20 next fiscal.
Asked about its plans of starting general insurance business, Bhatt said: "We hope to start it anytime within this calendar year or latest by this fiscal end. We are yet to receive some final approvals."
Worst is over for Indian economy: SBI chief
The worst is over for the Indian economy and credit has again started flowing into key sectors, O.P. Bhatt, chairman of the country's largest lender State Bank of India (SBI), said here Saturday.
"The worst is over for the economy. Auto and housing loans have started picking up already," Bhatt told reporters after releasing the bank's financial results.
SBI, which accounts for about 25 percent of all loans and deposits in the country, has posted a net profit of Rs.9,121 crore for 2008-09 as against Rs.6,729 crore the year before, a rise of 35.5 percent.
"Net profit for the fourth quarter (January-March) of 2008-09 increased 45.62 percent to Rs.2,742 crore from Rs.1,883 crore in the corresponding quarter of 2007-08," Bhatt said.
On the overseas operations of the bank, he said SBI would concentrate on "consolidating the existing business network". The bank is present in 33 countries.
It has plans to increase its Singapore operations from the present five branches to 12 this year and to 20 next fiscal.
Asked about its plans of entering the general insurance business, Bhatt said: "We hope to start it anytime within this calendar year or latest by this fiscal end. We are yet to receive some final approvals."
The net non-performing assets (NPAs) ratio of SBI for 2008-09 stood at 1.76 percent, compared to 1.78 percent in 2007-08. The total amount restructured during the year was Rs.8,310 crore.
The capital adequacy ratio of the bank is above 14 percent.
SBI's total income for the fiscal rose 33 percent to Rs.76,479.2 crore from the previous year's Rs.57,645.2 crore.
Consolidated net profit was at Rs.10,955.2 crore, a 22 percent increase from Rs.8,960.6 crore in 2007-08.
The bank declared a 290 percent dividend at Rs.29 per share for fiscal 2008-09 that ended March 31.
"The worst is over for the economy. Auto and housing loans have started picking up already," Bhatt told reporters after releasing the bank's financial results.
SBI, which accounts for about 25 percent of all loans and deposits in the country, has posted a net profit of Rs.9,121 crore for 2008-09 as against Rs.6,729 crore the year before, a rise of 35.5 percent.
"Net profit for the fourth quarter (January-March) of 2008-09 increased 45.62 percent to Rs.2,742 crore from Rs.1,883 crore in the corresponding quarter of 2007-08," Bhatt said.
On the overseas operations of the bank, he said SBI would concentrate on "consolidating the existing business network". The bank is present in 33 countries.
It has plans to increase its Singapore operations from the present five branches to 12 this year and to 20 next fiscal.
Asked about its plans of entering the general insurance business, Bhatt said: "We hope to start it anytime within this calendar year or latest by this fiscal end. We are yet to receive some final approvals."
The net non-performing assets (NPAs) ratio of SBI for 2008-09 stood at 1.76 percent, compared to 1.78 percent in 2007-08. The total amount restructured during the year was Rs.8,310 crore.
The capital adequacy ratio of the bank is above 14 percent.
SBI's total income for the fiscal rose 33 percent to Rs.76,479.2 crore from the previous year's Rs.57,645.2 crore.
Consolidated net profit was at Rs.10,955.2 crore, a 22 percent increase from Rs.8,960.6 crore in 2007-08.
The bank declared a 290 percent dividend at Rs.29 per share for fiscal 2008-09 that ended March 31.
Friday, May 8, 2009
SBI may review rates by May-end
State Bank of India (SBI), the country's largest lender, may review rates by May-end as it has seen a steady rise in deposits last fiscal, a top official said here Friday.
"Our deposits are growing at fantastic rates; we see an excess of supply over demand," SBI chairman O.P. Bhatt told reporters on the sidelines of the inauguration of the bank's inward remittance division.
"We will see if further tweaking of deposit rates is required," he said, adding that in 2008-09 the bank increased its market share of deposits phenomenally.
"Our increase in the market share of deposits last year was the highest seen by any bank anywhere and we are currently getting $200 million a day," Bhatt said.
Asked if the bank was planning to cut its prime lending rate (PLR), he said SBI's lending rates were the "lowest in the industry".
"Tell me which segment of loan offered by SBI is not cheaper than the industry levels?" he asked.
However, Bhatt expects interest rates to fall further.
"In general, there seems to be a softening of interest rates on deposit and advance sides," Bhatt said.
Talking about the credit demand, Bhatt said the prevailing sentiment was resisting credit offtake.
"I am today giving the cheapest home loan at 8 percent but still people are not coming forward as they expect interest rates to fall further," he said.
"Our deposits are growing at fantastic rates; we see an excess of supply over demand," SBI chairman O.P. Bhatt told reporters on the sidelines of the inauguration of the bank's inward remittance division.
"We will see if further tweaking of deposit rates is required," he said, adding that in 2008-09 the bank increased its market share of deposits phenomenally.
"Our increase in the market share of deposits last year was the highest seen by any bank anywhere and we are currently getting $200 million a day," Bhatt said.
Asked if the bank was planning to cut its prime lending rate (PLR), he said SBI's lending rates were the "lowest in the industry".
"Tell me which segment of loan offered by SBI is not cheaper than the industry levels?" he asked.
However, Bhatt expects interest rates to fall further.
"In general, there seems to be a softening of interest rates on deposit and advance sides," Bhatt said.
Talking about the credit demand, Bhatt said the prevailing sentiment was resisting credit offtake.
"I am today giving the cheapest home loan at 8 percent but still people are not coming forward as they expect interest rates to fall further," he said.
Sunday, March 9, 2008
SBI to expand gold coin sale business
An unabated fascination for gold among the domestic consumers and its safe-haven investment character has inspired the State Bank of India to ratchet up its gold business and bring out coins weighing 2-50 grams to be sold through its select branches.
"SBI is expanding its network for sale of gold coins and is desirous of short-listing/empanelling established manufacturers of proven track record for minting and supply of gold coins," the bank said on its website while inviting offers from manufacturers.
The SBI, which launched gold coin business around Diwali last year, will soon be shortlisting manufacturers for minting and supplying the gold coins weighing of 2, 5, 8, 10, 20 and 50 grams. Last year, the largest Public Sector lender opened around 100 branches across the country.
The gold prices have been continuously rising for quite some time because of a host of reasons which include weakening of dollar vis-à-vis rupee and increase in domestic demand.
Gold prices in the domestic market touched Rs 13,000 per 10 gram in Kolkata on March three. The metal is trading at Rs 12,960 today in the national Capital.
The manufacturers of the coins will be required to mint gold coins of 999.9/995 fineness from the bars supplied by the SBI.
As per the terms of offer, manufacturers will also be required to supply the coins in tamper-proof certified cards across the country.
The interested manufacturers can send their offers to the bank by March 24, 2008, SBI said.
"SBI is expanding its network for sale of gold coins and is desirous of short-listing/empanelling established manufacturers of proven track record for minting and supply of gold coins," the bank said on its website while inviting offers from manufacturers.
The SBI, which launched gold coin business around Diwali last year, will soon be shortlisting manufacturers for minting and supplying the gold coins weighing of 2, 5, 8, 10, 20 and 50 grams. Last year, the largest Public Sector lender opened around 100 branches across the country.
The gold prices have been continuously rising for quite some time because of a host of reasons which include weakening of dollar vis-à-vis rupee and increase in domestic demand.
Gold prices in the domestic market touched Rs 13,000 per 10 gram in Kolkata on March three. The metal is trading at Rs 12,960 today in the national Capital.
The manufacturers of the coins will be required to mint gold coins of 999.9/995 fineness from the bars supplied by the SBI.
As per the terms of offer, manufacturers will also be required to supply the coins in tamper-proof certified cards across the country.
The interested manufacturers can send their offers to the bank by March 24, 2008, SBI said.
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