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
Putin, Kim Jong meet in Russia to ease Korean peninsula tension, boost economic ties
Posted on 25th April 2019
Vladivostok: Russian President Vladimir Putin told North Korean leader Kim Jong Un on Thursday that he supports ongoing efforts to ease tensions on the Korean peninsula and wants to boost economic ties.

"I am confident that your visit today to Russia ... will help us to better understand how we can resolve the situation on the Korean peninsula and what Russia can do to support the positive processes that are currently taking place," Putin said as the two began their first-ever talks in Russia's Far East.

Vodafone Idea rights issue gets oversubscribed as promoters commit ₹18,250 crore
Posted on 25th April 2019
Vodafone Idea Ltd., India’s largest telecom operator by subscriber base, on Thursday said its rights issue was oversubscribed, with its promoters committing ₹18,250 crore.

According to a BloombergQuint report, the issue received bids worth ₹26,950 crore compared with ₹25,000 crore on offer.

Sensex, Nifty open on a positive note ahead of F&O expiry
Posted on 25th April 2019
Equity benchmarks BSE Sensex and NSE Nifty started on a positive note on Thursday ahead of the expiry of April derivative contracts, amid strong foreign fund inflow.

The 30-share index was trading 42.83 points or 0.11 per cent higher at 39,097.51, and the NSE Nifty rose 22.95 points or 0.20 per cent to 11,749.10.

SBI receives approval to raise $2.5 billion via foreign currency bonds
Posted on 25th April 2019
At a time when both spreads and US treasury yields are contracting, the country’s largest lender State Bank of India (SBI) indicated it received approval to raise up to $2.5 billion via issue of foreign currency bonds in fiscal 2020.

It is not yet clear as to what time the bank will hit the market with its issue. However, what is noteworthy is the fact that fund-raising costs have come down significantly in the dollar bond market.

HDFC Bank struggles with farm loan portfolio for the third year
Posted on 25th April 2019
HDFC Bank’s asset quality struggles with its agri-loan portfolio may well enter its third year in 2019-20, with the country’s largest private-sector lender already making provisions against future loan losses. In a conference call with analysts after HDFC Bank’s March quarter results, CFO Sashidhar Jagdishan said the bank has been providing for agri-related delinquencies for the last few quarters.

» 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

3 Indians join Manika in singles main draw ITTF World C'ships

JustDial data leak exposed personal details of 100 million users: IT expert

Uber nears deal with Softbank-led group for self-driving car unit: Report

Jet shares sink 34% but lenders hopeful of successful bids for airline

Walmart, Amazon kick off government online pilot program

More India News

Photo Gallery

Maruti Eeco(12 Images) Maruti Eeco
  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