India News
Search Web Directory
News Home
SBI set to rope in strategic advisor, to focus on capital conservation
Posted on 26th June 2018
The country’s largest lender, State Bank of India, plans to rope in a strategic advisor to conserve capital, increase return on assets and optimise the balance sheet. This comes in the backdrop of a decline in net loss to Rs 65.47 billion in 2017-18 due to a sharp rise in provisions for bad loans.

According to SBI executives, the aim is to do things efficiently with an eye on profitability, and get a feedback on areas, including which business to enter and which to exit.

The bank reported a net loss of Rs 65.47 billion, and a pre-provision operating profit of Rs 595.11 billion in 2017-18. Net interest income came in at around Rs 748.54 billion, other income at Rs 446.01 billion and cost to income ratio at 50.18 per cent during the financial year.

The bank is looking to inter-alia optimise its balance sheet and increase its return on assets (RoA) and pre-provisions operating profit (PPoP) by growing interest income, treasury returns, fee income, and reducing interest expense, operating expense as well as optimising the balance sheet.

The work would be spread over 12 months. While the advisor assistance would set the ball rolling, the plan was to institutionalise the process for ensuring beneficial outcomes for the long term, SBI executives said.

As a step to attain scale and gain efficiencies, the bank merged five associates banks and Bharatiya Mahila Bank (BMB) with itself in 2017-18. The integration of network and consolidation of branches have given benefits such as cost saving and better utilisation of human resources and systems. But more work was necessary for deciding priorities such as which business activities should be in focus.

The consultant should perform an upfront diagnostic to identify opportunities that have the potential to improve the bank’s return on assets and pre-provisions operating profit through a detailed design of selected opportunities.

For the interest income, the key revenue source for the bank, the emphasis would be to understand the portfolio mix of other competitors in the market and its evolution.

Given the market outlook and the bank’s strengths and historical performance, the advisor is expected to play a key role in designing optimal portfolio mix across retail, small and medium enterprises (SMEs) and corporate lending book.

The opportunities to improve the tenure of lending products and reduce prepayments would be part of advisory ambit.

The study will focus on strategies adopted by players for effective recovery of retail and SME loans that have been written off to improve interest income and opportunities for the bank.

The strategies for enhancing opportunities for the bank to improve its priority sector lending portfolio management to maximise risk adjusted interest income and reduce investments in Rural Infrastructure Development Fund (RIDF).

On the fee side, the consultant is expected to assist in detailing opportunities to improve fee income from third-party products and subsidiaries — insurance, mutual funds, forex, derivatives and credit cards.

The strategies are needed for the bank to grow fee income from the corporate portfolio and identify other fee income opportunities for the bank, they added.

Related Companies: State Bank of India   

Other Latest News
EC likely to announce Lok Sabha poll schedule in March first week: Sources
Posted on 18th January 2019
The dates for the Lok Sabha elections are likely to be announced in the first week of March, sources indicated on Friday.The term of the present Lok Sabha ends on June 3.

The Election Commission is in the process of deciding the number of phases and the months in which polling would be held, they said.

India vs Australia 3rd ODI: As it happened in Melbourne
Posted on 18th January 2019
MS Dhoni hit his third half century in as many matches while Kedar Jadhav scored an unbeaten fifty as India beat Australia by 7 wickets in the third and final match to win the ODI series 2-1.

Chasing a target of 231, India lost Rohit Sharma early. However, Shikhar Dhawan and Virat Kohli moved the score ahead. It was left to Dhoni along with Jadhav this time to take India home again.

Sun Pharma seeks Sebi help, shares plummet after whistleblower complaint
Posted on 18th January 2019
Sun Pharmaceutical Industries Friday asked markets regulator Sebi to look into the issues of certain entities and individuals allegedly adopting unfair trade practices prejudicial to the company's shareholders.

Against the backdrop of reports that a second whistleblower complaint has been filed against it and shares taking a beating on the exchanges, Sun Pharma has written to Sebi flagging concerns that certain entities are allegedly adopting unfair trade practices.

Suzuki to commission third plant at Gujarat by 2020; launch hybrid vehicles
Posted on 18th January 2019
Japanese auto maker Suzuki Motor Corporation Friday said it will commission its third plant at Gujarat by 2020 and will aggressively introduce new hybrid vehicles in India with technical support from Toyota.

Speaking here at the Vibrant Gujarat Global Summit here, Suzuki Motor Corporation (SMC) President Toshihiro Suzuki also sought an enabling policy support from the government to further invest in localisation of components of hybrid and electric vehicles.

Wipro nears 52-week high ahead of board meet for bonus issue, Q3 results
Posted on 18th January 2019
Shares of Wipro were trading firm at Rs 341 apiece, up 1.5 per cent on the BSE, in an otherwise subdued market, ahead of the board meeting today to consider bonus issue and December quarter results.

in comparison, the S&P BSE Sensex was down 0.15 per cent at 36,320 points at 11:06 am. Wipro was trading close to its 52-week high of Rs 344 hit on December 13, 2018, on the BSE in intra-day trade.

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for SBI set to rope in strategic advisor, to focus on capital conservation
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Security Code*

Be the first person to write a business review for SBI set to rope in strategic advisor, to focus on capital conservation

Most Read News

Rupee opens flat at 71.06 against US dollar

Johnson & Johnson hip implants: Supreme Court accepts compensation formula

Volkswagen and Ford’s marriage leaves investors feeling jilted

Amazon lists over 1,000 job openings in Hyderabad, Bangalore despite new e-commerce rules

SBI puts on sale Essar Steel loan of Rs 15,431 crore

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
About us
Link to us
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2019
    All Rights Reserved
Privacy Statement