Opinion | SBI is still too cheerful after eight misfires
6 years, 2 months ago

Opinion | SBI is still too cheerful after eight misfires

Live Mint  

State Bank of India chairman Rajnish Kumar wants to assure investors he’s in complete control of the “demon” of soured loans. The bank’s first quarterly profit in 12 months is no doubt an encouraging sign, though net income of $129 million on a $284 billion loan book is hardly worth celebrating. Further slippages could also be contained, with State Bank of India’s NPA ratio improving to 9.95% in September from almost 11% in March. State Bank’s $600 million debt and equity exposure to IL&FS Group, the infrastructure lender whose sudden bankruptcy caused a crisis of confidence among nonbank financiers, is just the tip of the iceberg.

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History of this topic

Why this class of companies is waiting for more corporate failures
4 months, 1 week ago

Why this class of companies is waiting for more corporate failures

Live Mint  

Mumbai: On a humid evening in May, a group of executives from various asset reconstruction companies gathered at the ballroom of hotel President in Cuffe Parade, Mumbai. The third and more recent challenge is the advent of India’s so-called bad bank, the state-owned National Asset Reconstruction Company Ltd. As a rule, the industry thrives when the level of corporate non-performing …

SBI raises lending rate by 10 basis points across tenures from August 15: Will loan EMIs go up?
5 months ago

SBI raises lending rate by 10 basis points across tenures from August 15: Will loan EMIs go up?

India TV News  

The State Bank of India, the largest state-owned bank in India, has announced an increase in its lending rates by 10 basis points across tenors, effective from August 15, 2024. Introduced in April 2016 as a replacement for the base rate system, the MCLR is used as a benchmark for setting lending rates unless specific exceptions are approved by the …

Banks should improve corporate loans, keep deposit base healthy
7 months, 3 weeks ago

Banks should improve corporate loans, keep deposit base healthy

New Indian Express  

For the first time ever, the cumulative net profits of Indian banks surpassed Rs 3 lakh crore in 2023-24, up from Rs 2.3 lakh crore in 2022-23. While the 26 private lenders’ net profits shot up 42 percent to Rs 1.78 lakh crore, the 12 public sector banks reported net profits of Rs 1.41 lakh crore in 2023-24, a 34 …

Banks May See Rise In Bad Loans From Retail, Small Businesses, Says SBI Official Ashwini Kumar Tiwari
1 year, 10 months ago

Banks May See Rise In Bad Loans From Retail, Small Businesses, Says SBI Official Ashwini Kumar Tiwari

ABP News  

Banks in India could see a rise in bad loans or non-performing assets in the retail and small business segments from its recent low levels, an official with State Bank of India told news agency Reuters on Thursday. At an event in Mumbai, Ashwini Kumar Tiwari, managing director at State Bank of India said, "We cannot have a system where …

SBI says loan demand is bouncing back as its shares outperform peers
2 years, 7 months ago

SBI says loan demand is bouncing back as its shares outperform peers

Live Mint  

Consumer cutbacks due to raging inflation and higher borrowing costs are failing to dent investment plans at Indian businesses tapping the country’s biggest lender, a sign that a recovery in Asia’s third-largest economy is gathering pace. Companies are steadily drawing down from a $71 billion loan pipeline, Dinesh Kumar Khara, chairman of State Bank of India, told Bloomberg News in …

SBI Q4 results: Profit jumps 41%, bad loans decline
2 years, 8 months ago

SBI Q4 results: Profit jumps 41%, bad loans decline

India Today  

State Bank of India on Friday reported a 41 per cent surge in standalone net profit at Rs 9,114 crore for the fourth quarter ended March 2022, helped by decline in bad loans. On a consolidated basis, the bank reported a 56 per cent increase in net profit at Rs 9,549 crore, compared to Rs 6,126 crore in the fourth …

SBI alert: EMIs for State Bank of India customers to go up | Top points
2 years, 8 months ago

SBI alert: EMIs for State Bank of India customers to go up | Top points

India Today  

State Bank of India has raised its marginal cost of funds based lending rate by 10 basis points or 0.1 per cent across all tenures. An overnight, one-month and three-month MCLR rose by 10 bps to 6.75 per cent, whereas a six-month MCLR increased to 7.05 per cent. At the same time, two-year MCLR increased by 0.1 per cent to …

Stress in home loans won’t deter SBI, says Khara
3 years, 5 months ago

Stress in home loans won’t deter SBI, says Khara

Live Mint  

Despite rising delinquencies in home loans, State Bank of India has no plans to rethink its strategy of aggressively growing this portfolio, given the significant potential of home finance, chairman Dinesh Khara said. Even as SBI’s market share in home loans during the quarter rose by 24 basis points sequentially, bad loans rose by 59 bps. We have mastered how …

‘PSU banks’ bad-loan additions may moderate’
3 years, 10 months ago

‘PSU banks’ bad-loan additions may moderate’

The Hindu  

Indian state-owned lenders are expected to see additions to bad loans moderate, but structural issues at the banks could cap returns on their stocks, Morgan Stanley said on Thursday. “Over the past few years, state-owned enterprise banks have seen significant capital infusion by the government, lower risk-weighted assets’ density, higher provisioning and some large recoveries,” the brokerage said in a …

SBI reduces home loan rates to 6.7%
3 years, 10 months ago

SBI reduces home loan rates to 6.7%

The Hindu  

The country’s largest lender State Bank of India on March 1 said it has reduced interest rates on home loans by up to 10 basis points and is offering loans starting from 6.70% rate. The bank said the home loan interest rates will start from 6.70% for loans up to ₹75 lakh and 6.75% for loans in the range of …

SBI to boost retail book, sees better earnings
4 years, 1 month ago

SBI to boost retail book, sees better earnings

Live Mint  

State Bank of India will accelerate retail loans and expects most lenders to post stronger-than-anticipated earnings as the economy revives faster than expected, according to chairman Dinesh Khara. “That’s why we are expected to see much better results than at the beginning of the pandemic.” SBI’s bad loan ratio fell to 5.28% at the end of September from 5.44% three …

Non-performing Loans in Indian Banking Sector to Rise in Next 12-18 Months: S&P
4 years, 1 month ago

Non-performing Loans in Indian Banking Sector to Rise in Next 12-18 Months: S&P

News 18  

Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11 per cent of gross loans in the next 12-18 months, S&P Global Ratings said on Tuesday. It said forbearance is ”masking” problem assets for Indian banks arising from COVID-19 and the financial institutions will likely have trouble maintaining momentum after the …

No Clamour or Rush for Restructuring of Loan, Says SBI Chairman
4 years, 3 months ago

No Clamour or Rush for Restructuring of Loan, Says SBI Chairman

News 18  

Contrary to market expectations, there was not too much demand or clamour for restructuring of loans as permitted by RBI recently to beat the COVID-19 related stress, SBI Chairman Rajnish Kumar said. He expects not more than Rs 1.5 lakh crore worth loans would avail restructuring benefit even though people have projected it to be around Rs 8 lakh crore. …

No funds available: Depositors at India's PMC Bank survive on loans, charity
4 years, 4 months ago

No funds available: Depositors at India's PMC Bank survive on loans, charity

India Today  

In February, 82-year-old Kishan Lal appealed to India's finance minister for help, saying in a Twitter message he was ready to donate his kidney and eyes if someone could help arrange funds to treat his daughter, who had a brain tumour. Asked about the delay in resolving PMC's problems, Jai Bhagwan Bhoria, an administrator appointed by the RBI to revive …

SBI Chief Says Will Look at Loan Restructuring after End of Moratorium
4 years, 4 months ago

SBI Chief Says Will Look at Loan Restructuring after End of Moratorium

News 18  

State Bank of India will consider loan restructuring for eligible borrowers after the end of moratorium period which draws to a close on August 31, according to its Managing Director Dinesh Khara. “Restructuring of eligible loans will also be considered as and when the moratorium comes to an end at the end of August,” he said, speaking at a conference …

SBI Reports 81% Surge in Quarterly Profit, Provisions for Bad Loans Drop
4 years, 5 months ago

SBI Reports 81% Surge in Quarterly Profit, Provisions for Bad Loans Drop

News 18  

Top Indian lender State Bank of India reported an 81% jump in quarterly profit on Friday, helped by a one-time gain from selling a stake in its life insurance unit and a drop in provisions for bad loans. Indian lenders are bracing for a surge in bad loans in a pandemic-ravaged economy, with the central bank's relief measures including deferments …

State-run lenders have at least ₹7.9 tn loans under moratorium
4 years, 6 months ago

State-run lenders have at least ₹7.9 tn loans under moratorium

Live Mint  

India’s five largest state-run banks collectively have at least ₹7.9 trillion of loans under moratorium, including loans that were stressed even before the coronavirus outbreak, regulatory filings showed. Different banks are using different methods to calculate the moratorium amount and there is a lack of coherence at the moment,” said Asutosh Mishra, head of research, institutional equity, Ashika Stock Broking. …

PSBs disburse 52% of the loans sanctioned under emergency credit line guarantee scheme
4 years, 6 months ago

PSBs disburse 52% of the loans sanctioned under emergency credit line guarantee scheme

Live Mint  

State-owned lenders have sanctioned loans worth ₹40,416 crore under the emergency credit line guarantee scheme, out of which, 52% of the credit has already been disbursed, as of June 18, the finance ministry said. “As of 18 June 2020, PSBs have sanctioned loans worth ₹40,416 crore under the 100% Emergency Credit Line Guarantee Scheme, out of which ₹21,028.55 crore has …

He was a debt collector at age 12. Now, at SBI, he is chasing ₹1.5 lakh crore
4 years, 6 months ago

He was a debt collector at age 12. Now, at SBI, he is chasing ₹1.5 lakh crore

Live Mint  

From the age of 12, Challa Sreenivasulu Setty spent his school vacations collecting debts for his father’s grocery store in the small south Indian village of Potlapadu. One-Time Settlements “We prefer one-time settlements at SBI over long litigations,” Setty said of his first principle. “It is very difficult to state what approach we will take” on recovering loans from companies, …

SBI’s Mudra NPAs at 15%, loan book stabilized, says Rajnish Kumar
4 years, 6 months ago

SBI’s Mudra NPAs at 15%, loan book stabilized, says Rajnish Kumar

Live Mint  

While close to 15% of State Bank of India’s loans under the Pradhan Mantri Mudra Yojana have turned bad, the bank has been able stabilise the portfolio by introducing end-to-end digitisation, said Rajnish Kumar, chairman, SBI “We have tweaked the model and changed it to e-mudra. The bad loans used to be high in the up to ₹50,000 bracket and …

About 20% SBI borrowers avail loan repayment moratorium; banks can go for debt recast: Chairman Rajnish Kumar
4 years, 7 months ago

About 20% SBI borrowers avail loan repayment moratorium; banks can go for debt recast: Chairman Rajnish Kumar

Firstpost  

The SBI chairman advised borrowers to pay their loans if they are not facing any funding challenge. Mumbai: State Bank of India chairman Rajnish Kumar on Friday said close to 20 percent of the bank’s borrowers have availed moratorium on repayment of term loans instalments. On 27 March, the central bank had announced a three-month moratorium on payment of all …

Finance Minister Nirmala Sitharaman postpones meet with PSB chiefs to later this week
4 years, 8 months ago

Finance Minister Nirmala Sitharaman postpones meet with PSB chiefs to later this week

Firstpost  

Public sector banks have sanctioned loans worth Rs 42,000 crore to the MSME sector and corporates since the start of the lockdown. New Delhi: Finance Minister Nirmala Sitharaman review meeting with CEOs of public sector banks scheduled for Monday afternoon has been postponed. @FinMinIndia — Nirmala Sitharaman Office May 9, 2020 Sitharaman also said state-owned banks have sanctioned loans worth …

SBI to disburse Rs 700 cr to Mumbai circle MSMEs by June-end
4 years, 8 months ago

SBI to disburse Rs 700 cr to Mumbai circle MSMEs by June-end

India TV News  

State Bank of India, the country's largest lender, has set a target of disbursing Rs 700 crore to MSMEs in the Mumbai circle by the end of June, to help them tide over liquidity crisis due to the COVID-19 lockdown. "SBI will boost flow of credit to MSMEs in this challenging period by reassessing their working capital limit and also …

Big relief for SBI customers! State Bank of India says, All term loan EMIs automatically deferred by 3 months
4 years, 9 months ago

Big relief for SBI customers! State Bank of India says, All term loan EMIs automatically deferred by 3 months

India TV News  

India's biggest bank, the State Bank of India on Friday announced that all term loan EMIs will be deferred by three months automatically. Announcing the decision, SBI Chairman Rajnish Kumar told CNBC TV, "Installments will get automatically deferred by 3 months for term loans and customers don't have to apply to banks for it." Addressing media, the Reserve Bank of …

Govt asks state-run banks to provide liquidity support to corporate borrowers; SBI rolls out emergency credit line
4 years, 9 months ago

Govt asks state-run banks to provide liquidity support to corporate borrowers; SBI rolls out emergency credit line

Firstpost  

Small businesses have been approaching banks to provide additional liquidity support, also warning that loan repayments may be delayed. Mumbai/New Delhi: The government has asked all state-owned lenders to extend emergency credit lines to corporate borrowers, three government and banking sources said, as it rushes to tackle the fallout from the coronavirus outbreak that has grounded business across the globe. …

Banking on bailouts: The Hindu Editorial on Yes Bank crisis
4 years, 10 months ago

Banking on bailouts: The Hindu Editorial on Yes Bank crisis

The Hindu  

Just one day after it placed the financially troubled Yes Bank under a moratorium, the Reserve Bank of India announced a draft ‘Scheme of Reconstruction’ that entails the State Bank of India investing capital to acquire a 49% stake in the restructured private lender. The alacrity with which the bailout has been proposed is commendable, given that Yes Bank’s stock …

Yes Bank Stock Crashes Over 70% After RBI Takes Charge; Rahul Gandhi Attacks PM Modi Over Crisis
4 years, 10 months ago

Yes Bank Stock Crashes Over 70% After RBI Takes Charge; Rahul Gandhi Attacks PM Modi Over Crisis

ABP News  

Modi and his ideas have destroyed India’s economy. #NoBank — Rahul Gandhi March 6, 2020 While Moody's expects Indian authorities will take steps to prevent the weakness in the bank's viability from significantly impacting its depositors and senior creditors, the lack of a coordinated and timely action highlights continued uncertainty around bank resolutions in India. : Shares of Yes Bank …

SBI gets a ₹11,932 crore bad loans jolt from RBI
5 years, 1 month ago

SBI gets a ₹11,932 crore bad loans jolt from RBI

Live Mint  

Mumbai: India’s largest lender, State Bank of India, underreported bad loans and their provisioning by ₹11,932 crore and ₹12,036 crore, respectively, in 2018-19, the Reserve Bank of India has found, the highest such figures reported by any bank so far for the last fiscal. In a stock exchange filing on Tuesday disclosing the central bank’s risk assessment report, SBI said …

Investors wary of loans amid SBI’s higher valuation call
5 years, 2 months ago

Investors wary of loans amid SBI’s higher valuation call

Live Mint  

Mumbai: The country’s largest lender, State Bank of India, believes it deserves a higher valuation from investors than what is ascribed to it at present. Chairman Rajnish Kumar has rolled out his plan for the next two years, through which SBI will hack through its pile of bad loans and bring in virtuous business growth. The other risk with SBI, …

Loan melas have been recipe for NPA disaster for PSBs starting with Rajiv Gandhi era; Narendra Modi govt should learn from past
5 years, 3 months ago

Loan melas have been recipe for NPA disaster for PSBs starting with Rajiv Gandhi era; Narendra Modi govt should learn from past

Firstpost  

This announcement must be a Déjà vu moment for many senior and retired bank officials who would have participated in the 80’s loan melas and seen its consequences. On Thursday, Modi’s Finance Minister Nirmala Sitharaman said government banks will organise credit “Shamiana meetings” in 400 districts starting 3 October to give loans to non-banking finance companies and retail borrowers such …

Banks start approving retail loan proposals on ’PSB Loans in 59 Minutes’ portal
5 years, 4 months ago

Banks start approving retail loan proposals on ’PSB Loans in 59 Minutes’ portal

Live Mint  

According to a statement by PSB Loans in 59 Minutes on Thursday, applicants can now get in-principle approvals from 19 PSBs, including the State Bank of India, Punjab National Bank, Bank of Baroda and Union Bank of India. This will provide the loan aspirants quick and hassle-free access to home and personal loan whether or not they have banking and …

Cut in SBI’s FD rates raises hopes of a reduction in lending rates
5 years, 5 months ago

Cut in SBI’s FD rates raises hopes of a reduction in lending rates

Live Mint  

A steep cut in deposit rates by State Bank of India on Monday has raised hopes of a corresponding lending rate cut by India’s largest bank in August. SBI said it will reduce interest rates on retail fixed deposits with long tenures by up to 20 basis points and 35 bps for bulk deposits with effect from 1 August. In …

Govt keen on amalgamation of PSBs to create globally competitive, healthy large banks: Arun Jaitley
5 years, 10 months ago

Govt keen on amalgamation of PSBs to create globally competitive, healthy large banks: Arun Jaitley

Firstpost  

Jaitley said the NPA situation of PSU banks has improved in the last 2-3 quarters and the NDA government has ended the practice of “phone banking” New Delhi: The government is following the policy of amalgamating public sector banks to create healthy large banks which are globally competitive, finance minister Arun Jaitley said Thursday. He said the NPA situation of …

SBI to sell NPAs worth more than ₹1,000 crore
5 years, 10 months ago

SBI to sell NPAs worth more than ₹1,000 crore

Live Mint  

Mumbai: State Bank of India has decided to sell 487 bad loans worth over ₹1,000 crore in corporate, small and medium enterprise and housing segments to asset reconstruction companies, other banks and financial institutions, said a bank notice seeking bids. Interestingly, the bank has also put on sale 480 housing and SME loans from its stressed asset resolution branches across …

Revival is near, but toxicity worries State Bank of India
5 years, 11 months ago

Revival is near, but toxicity worries State Bank of India

Live Mint  

Is the Indian economy finally free of the toxicity that infected balance sheets of companies? SBI reported an impressive 16% growth in domestic loan offtake, which was surprisingly led by growth in its corporate book. SBI gave 20% more loans to companies than it did a year ago and a lot of it is indeed working capital. Now, gross bad …

Opinion | A bad loan farce gets another rerun in India
6 years ago

Opinion | A bad loan farce gets another rerun in India

Live Mint  

A new year, a new central bank governor. The solution back then lay in encouraging lenders to send problem loans to so-called corporate debt restructuring an out-of-of-court mechanism that helped banks recover some money in the absence of a modern bankruptcy law. So RBI governor Raghuram Rajan relented and gave lenders new tools—Strategic Debt Restructuring and Scheme for Sustainable Structuring …

The need for a boost to MSME sector
6 years, 2 months ago

The need for a boost to MSME sector

Live Mint  

Prime Minister Narendra Modi’s Diwali package for micro, small and medium enterprises may be late in the day, but it’s nevertheless a boon, particularly the interest subvention and the measures to see that bills are paid on time. According to the MSME Pulse report, for public sector banks, the level of non-performing assets among MSMEs went up from 13% in …

SBI chairman Rajnish Kumar sees bad loan provision falling after two quarters
6 years, 3 months ago

SBI chairman Rajnish Kumar sees bad loan provision falling after two quarters

Live Mint  

Nusa Dua, Indonesia: State Bank of India, the country’s largest lender, sees its provision for bad loans remaining high for at least the next two quarters, after which it will start softening as it steps up efforts to improve asset quality, its chairman said on Friday. The state-run lender is India’s banks have been plagued by a surge in non-performing …

NPAs of banks declining as recoveries of unpaid loans picking up, Indian economy to grow at 8%: Arun Jaitley – India TV
6 years, 3 months ago

NPAs of banks declining as recoveries of unpaid loans picking up, Indian economy to grow at 8%: Arun Jaitley – India TV

India TV News  

Union Finance Minister Arun Jaitley on Saturday said that bad debts or Non-performing Assets in the banking system are on the decline as recoveries of unpaid loans have picked up. The finance minister also said that the new insolvency law, indirect tax regime and demonetization will help drive India's growth rate and sustain it at 8 per cent. Jaitley said …

The Great Indian NPA Mess: Banks, govt and industrialists worked together to kick bad loans can down the road
6 years, 3 months ago

The Great Indian NPA Mess: Banks, govt and industrialists worked together to kick bad loans can down the road

Firstpost  

We now have one big problem which the Narendra Modi government is trying to postpone further by merging different public sector banks. As Raghuram Rajan, former governor of the Reserve Bank of India put it in a recent note to the Chairman of the Parliament Estimates Committee, Murli Manohar Joshi: “A larger number of bad loans were originated in the …

Raghuram Rajan says bankers’ optimism led to bad loans
6 years, 4 months ago

Raghuram Rajan says bankers’ optimism led to bad loans

Live Mint  

New Delhi: Over optimistic bankers, slowdown in the government’s decision making process and moderation in economic growth contributed to mounting bad loans, former Reserve Bank of India Governor Raghuram Rajan said in a note to a Parliamentary panel. In a note to Chairman of Estimates Committee Murli Manohar Joshi, Rajan said: “A variety of governance problems such as the suspect …

Narendra Modi speech on bank NPAs has hit the right target; bad loan menace is UPA-era product
6 years, 4 months ago

Narendra Modi speech on bank NPAs has hit the right target; bad loan menace is UPA-era product

Firstpost  

What makes Narendra Modi’s remarks ominous for the nation is his assertion that during the 6-year period, loans were sanctioned through what he humorously calls phone banking—behest lending at its worst. In the next six years, the amount touched Rs 52 lakh crore,” said Prime Minister Narendra Modi on 1 September 2018 while inaugurating the India Post Payments Bank. What …

Resolution soon on 7-8 stressed power assets worth Rs 17,000 cr, says SBI MD Arijit Basu
6 years, 4 months ago

Resolution soon on 7-8 stressed power assets worth Rs 17,000 cr, says SBI MD Arijit Basu

India TV News  

State Bank of India managing director Arijit Basu said today that about 7-8 power sector projects worth Rs 17,000 crore are expected to be resolved soon as lenders are nearing consensus on these. Out of these, 7-8 accounts we are looking at very closely, to get some consensus among the banks,” Basu said on the sidelines of an event here. …

It’s better safe than sorry for State Bank of India
6 years, 5 months ago

It’s better safe than sorry for State Bank of India

Live Mint  

Mumbai: A bank’s health is a good reflection of the health of its borrowers. What better way is there to judge if corporate India has recovered than through the balance sheet of the country’s largest lender, State Bank of India. SBI had to provide a staggering ₹ 19,228 crore out of which about 77% was towards bad loans and the …

India’s quick fix for banks has a loophole | Opinion
6 years, 6 months ago

India’s quick fix for banks has a loophole | Opinion

Hindustan Times  

Each new day brings a fresh band-aid in India’s efforts to patch up its banks. Each new day brings a fresh band-aid in India’s efforts to patch up its banks Missing from discussions around these quick fixes is a crucial question: How will bond vigilantes react to the sound of cans being kicked down the road? That’s because even before …

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