Tag: SBI

SBI Life gets final approval for IPO from SBI central board

SBI Life gets final approval for IPO from SBI central board

12/07/2017 12:47

State Bank of India said its central board approved dilution of its stake in its life insurance arm through an initial public offer for which it has already secured the sectoral regulatory approval, reported PTI.

“The executive committee of the central board of the bank at a meeting, accorded the final approval for divestment of SBIs stake in SBI Life through an IPO,” SBI said in an exchange filing.

Earlier, the insurance regulator Irdai approved SBI Lifes Rs 7,000 crore IPO application, making it the largest share sale by a life insurer in the country. But the company is awaiting the final approval from the markets watchdog Sebi.

Pending all the approvals from all regulators, the board has decided to go ahead with the share sale of up to 8 crore equity shares, the price of which will be fixed later in consultation with selling shareholders-the parent SBI, and the foreign partner BNP Paribas Cardiff, the filing said.

SBI Life has hired BNP Paribas, Citi, Kotak Investment Bank and Axis Capital to manage the initial share sale.

SBI Life is a joint venture between State Bank and BNP Paribas Cardiff in which SBI holds 70.1 per cent and BNP Paribas Cardiff 26 per cent. Private equity firm KKR and Singapore-government owned investment company Temasek hold 1.95 per cent each in the life insurer.

The company is expected to file draft share sale documents with the Sebi in the next few weeks.

SBI Life is the second largest private life insurer after ICICI Prudential. In December, KKR and Temasek bought 1.95 per cent each at Rs 460 per share, which valued the insurer at Rs 46,000 crore.

Last year, ICICI Prudential mopped up Rs 6,057 crore through an IPO and became the first life insurer to go public, valuing the company at Rs 48,000 crore.

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Snapdeal sounds out SBI Caps, Kotak Capital, 3 others for 2019 IPO

Snapdeal sounds out SBI Caps, Kotak Capital, 3 others for 2019 IPO

03/04/2017 12:17

Snapdeal has sounded out five merchant bankers, including SBI Caps and Kotak Mahindra Capital, to work on a public offer that is likely to hit the market in the second half of 2019, reported PTI.

The third largest marketplace majority owned by Japanese giant SoftBank has also reportedly appointed Swiss investment banking major Credit Suisse as a special advisor for the share sale, people aware of the development told PTI.

“The IPO process is on with in earnest and may open in the second half of calender 2019, depending on the market sentiment. The management has zeroed in on five i-bankers incluing SBI Caps and Kotak Mahindra Capital,”said the source as per the media reports.

The source also said out of the five i-bankers sounded out, it will pick only one lead-banker that could be either SBI Caps or Kotak. It has also sounded out top law firms Amarchand Mangaldas, AZB & Partners and Khaitan & Co to advise it on the proposed share sale plan.

The development comes within days of co-founder and chief executive Kunal Bahl writing to the employees, whose numbers have come down to under 3,000 from 7,000 a year ago, asking them to prepare for an IPO a la the hugely successful share sale by retailer D-Mart, that was oversubcribed over 100 times and made a market debut with a whopping 114 per cent premium a fortnight ago.

The Gurgaon-based Snapdeal which has been burning money to compete with its larger rivals Flipkart and the American giant Amazon, is reported to have only cash left for a year at best, and is desperately to raise funds amidst reports that existing investors led by Softbank which own 33 per cent and Kalari Capital want it to be merged with Flipkart or Paytm.

Due to cash cruch and massive write-down in valuations the company has reduced costs by 60 per cent, Bahl said in the March 27 letter and also reported slashed one-third of its employee-count in the past one year alone, is focusing on growing in profitably, which the management feels is possible through an IPO.

Snapdeal has so far raised over USD 1.7 billion, including USD 200 million in early 2016 and is desperately seeking more money, according to sources. The e-tailer has also reportedly slashed its monthly cash burn by 80 per cent, incurring a USD 4-5 million a month now, from USD 20-25 million in its bid to conserve cash.

Its early-stage investors include Kalaari Capital and Nexus Venture Partners, while the largest shareholder is Softbank wants to exit. The Japanese giant has pumped in close to USD 1 billion in the company which was valued at USD 6.5 billion in December 2016.

While Softbank owns 33 per cent in Snapdeal, Nexus owns roughly 10 per cent and Kalaari nearly 8 per cent, as per the RoC filing. Chief executive Kunal Bahl and chief operating officer Rohit Bansal, together own under 6.5 per cent in the of the company they cofounded. In the March 27 letter to employees titled ‘The DMart story and our path to profitability, Bahl has alluded to the success of the DMart IPO and said there are many lessons to be learnt from the disciplined execution and focus of the retailer.

SBI up over 1% on plans to sale 10% stake in SBI Life

SBI up over 1% on plans to sale 10% stake in SBI Life

27/03/2017 12:15

Shares of country’s largest lender State Bank of India fell over 1 per cent on the Bombay Stock Exchange after the lender said that it is planning to dilute 10 per cent of its stake in the life insurance venture SBI Life through public offer.

Following the announcement, shares of bank gained as much as 1.68 per cent to hit intra-day high of Rs 280.70 apiece on the Bombay Stock Exchange.

In a similar fashion, stocks of lender rose 0.33 per cent to Rs 277.40 apiece on the National Stock Exchange.

Meanwhile, the broader benchmark BSE Sensex was trading at 29,195.93, down 225.47 points or 0.77 per cent, at 12:20 hours.

SBI creates wholly-owned subsidiary to manage real estate

SBI creates wholly-owned subsidiary to manage real estate

14/03/2017 12:49

The country’s largest lender State Bank of India has incorporated a specialised firm — SBI Infra Management Solutions Pvt Ltd (SBIIMS) — that will manage its premises and real estate property across the country.

The move is seen as public sector banks’ efforts to exit non-core activities to improve balance sheet as they have piled up huge bad assets over the past few years.

With strict guidelines from government, many state-owned banks are exiting their no n-core activities as well as selling their bad loans to asset reconstruction companies and other financial entities.

SBI said that the new entity has been established to save time of banks’ executives who are involved in managing these non-core businesses.

“The primary role of the new entity will be to handle transaction management/ advisory services, project management, facility management and implementation of policies and initiatives,” SBI said in a statement.

With this, the officers who were involved in non-core activities would be better utilised for core banking services, it said.

“We realised that the job of acquisition, construction and maintenance of owned and leased premises, which is a non-core activity, were being looked after by 1,100 officials of the bank including 200 technical officials. Hence, it made sense to create separate entity employing much lesser number of employees,” Arundhati Bhattacharya, Chairman of SBI said.

She said the new subsidiary will have 400 dedicated officials to handle premises and real estate related jobs.

SBIIMS will have its circle office in each local head office centre of SBI and about 100 zonal offices at administrative office centres of SBI on pan India basis.

Initially, this subsidiary will look after work related to premises and estate of SBI group only.

Meanwhile, shares of the Bank were trading at Rs 275.35 apiece, up 1.21 per cent from the previous close at 12:55 hours on BSE.

Markets remain rangebound; APSEZ, SBI shares advance

10/02/2017 10:15

The key domestic benchmark indices were trading in a positive terrain in rangebound trade in the morning trading session after erasing some early gains, weighed by ITC, ICICI Bank as well as auto and pharma stocks.

The markets got some support from firm cues from fellow Asian peers after Wall Street ended in green in overnight trade, ahead of the industrial production and manufacturing output data later in the day.

The financial stocks will remain in focus today as index heavyweight State Bank of India and Bank of Baroda will announce their December quarter earnings report. Today is going to be the busiest day of the earnings season as over 450 companies will release their financial report which include big names such as, Berger Paints, GAIL, Hindustan Zinc, M&M, Tata Power, Reliance Capital and Sun TV. At 10:10 a.m, the Bombay Stock Exchange bellwether Sensex was trading at 28356.14 up by 26.44 points or by 0.09 per cent, while the NSE Nifty was at 8794 points, trading higher by 15.6 points or by 0.18 per cent. The BSE Sensex touched intraday high of 28456.18 and intraday low of 28319.47 The NSE Nifty touched intraday high of 8822.1 and intraday low of 8781.35

The top gainers of the BSE Sensex pack were Adani Ports & Special Economic Zone Ltd. (Rs. 311.60,+2.35 per cent), State Bank of India (Rs. 279.50,+1.32 per cent), Oil And Natural Gas Corporation Ltd. (Rs. 195.15,+1.14 per cent), Tata Steel Ltd. (Rs. 464.00,+0.89 per cent), NTPC Ltd. (Rs. 169.75,+0.83 per cent), among others.

Meanwhile, Lupin Ltd. (Rs. 1480.45,-1.00 per cent), Tata Motors Ltd. (Rs. 508.45,-0.85 per cent), ICICI Bank Ltd. (Rs. 282.75,-0.79 per cent), ITC Ltd. (Rs. 275.50,-0.68 per cent), GAIL (India) Ltd. (Rs. 487.70,-0.56 per cent), were among the top losers on BSE.

The Market breadth, indicating the overall strength of the market, was strong. On BSE out of total 2178 shares traded, 1221 shares advanced, 835 shares declined while 122 were unchanged.

On the global front, Asian stocks were trading higher today led by the Japanese market, which is up by over two percent with the gain in dollar, while the US markets closed higher in the previous trading session mainly due to comments from US President to announce a plan to lower the tax burden on American business.

SBI Life may offer 10% stake in IPO

SBI Life may offer 10% stake in IPO

31/01/2017 10:31

SBI Life Insurance may offer 10 per cent stake in the Initial Public Offering (IPO) when it goes to capital markets, said a top executive of the company according to the PTI report.

“Finally whether an IPO will happen or when it will happen we have not still decided. But there is a possibility that it may happen in the coming financial year that is 2017-18. So in IPO, when you go to market for the first time you offer ten per cent,” Arijit Basu, MD and CEO, SBI Life said in a press conference.

SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif. SBI owns 74 per cent of the total capital and BNP Paribas Cardif the remaining 26 per cent stake. The insurer has an authorised capital of Rs 2,000 crore and a paid up capital of Rs 1,000 crore.

Early December, State Bank of India had sold 3.9 per cent of its stake in SBI Life to global private equity major KKR and the Singaporean sovereign fund Temasek Holdings for Rs 1,794 crore or USD 264 million, valuing the third largest private life insurer at around Rs 46,000 crore.

Replying to a query, Basu said the picture is still unclear whether SBI will dilute entire ten per cent or five per cent each by both the partners.

“If the SBI is to divest the entire ten per cent then its stakes comes down to 60 per cent from the existing 70 per cent,” he added.

He said the company grew at 39 per cent in individual new premium till December whereas the industry grew at 20 to 22 per cent.

Basu said the market share of the company has gone to 21 per cent as on December last year from 18 per cent in the previous year.

According to him, Assets Under Management currently pegged at Rs 92,000 crore. SBI Life today inaugurated its new Regional Office here.

Markets remain rangebound; HDFC, SBI shares advance

21/12/2016 10:14

The key domestic benchmark indices were trading in a positive terrain as rangeboud trade was witnessed in the morning trading session tracking firm cues from fellow Asian markets, but market volume remained thin as traders began to quiet down in the lead-up to Christmas.

Shares of Bharti Airtel will remain in focus after the telecom major said that its subsidiary Network i2i has inked pact with Egyptian firm Orascom to acquire the latter’s entire equity stake in Middle East North Africa Submarine Cable Systems (MENA-SCS).

At 10:10 a.m, the Bombay Stock Exchange bellwether Sensex was trading at 26334.18 up by 26.2 points or by 0.1 per cent, while the NSE Nifty was at 8090.3 points, trading higher by 7.9 points or by 0.1 per cent.

The BSE Sensex touched an intraday high of 26394.14 and an intraday low of 26296.26 while the NSE Nifty touched an intraday high of 8112.55 and an intraday low of 8075.85.

The top gainers of the BSE Sensex pack were Housing Development Finance Corporation Ltd. (Rs. 1250.95,+1.04 per cent), State Bank of India (Rs. 256.40,+0.73 per cent), Asian Paints Ltd. (Rs. 875.00,+0.73 per cent), ICICI Bank Ltd. (Rs. 253.20,+0.64 per cent), NTPC Ltd. (Rs. 162.80,+0.62 per cent), among others.

Meanwhile, Tata Consultancy Services Ltd. (Rs. 2318.00,-0.84 per cent), Tata Motors Ltd. (Rs. 469.70,-0.66 per cent), GAIL (India) Ltd. (Rs. 425.90,-0.64 per cent), Dr. Reddy’s Laboratories Ltd. (Rs. 3030.05,-0.53 per cent), Hero MotoCorp Ltd. (Rs. 3040.95,-0.53 per cent), were among the top losers on BSE.

The Market breadth, indicating the overall strength of the market, was strong. On BSE out of total 1918 shares traded, 1095 shares advanced, 720 shares declined while 103 were unchanged.

On the global front, Asian stocks were trading higher today following the record gains overnight on Wall Street as investors shrugged off geopolitical tensions mounting amidst terrorist attack on a Berlin Christmas market and the killing of the Russian ambassador toTurkey. US stocks closed higher in the previous trading session as investors continued to hope that the newly elected US President-elect Donald Trump would announce fiscal boost which will support riskier assets.

Sensex, Nifty volatile; SBI, ICICI Bank remain under pressure

28/11/2016 14:37

The key domestic benchmark indices remained flat with positive bias during the late noon trading session. Some support came after RBI Governor Urjit Patel said that all necessary actions are being taken to ‘ease the genuine pain of citizens’ who are honest and who have been hurt. Liquidity in the banking system has increased and the intent is to normalise things as soon as possible.

At 14:30 hours, the 30-share benchmark index was trading at 26342.21 up by 25.87 points or by 0.1 per cent while the NSE Nifty was at 8116.7 up by 2.4 points or by 0.03 per cent.

In the volatile trade so-far, Sensex touched intraday high of 26405.72 and intraday low of 26183.22 The NSE Nifty touched intraday high of 8145.9 and intraday low of 8066.5.

The top gainers of the BSE Sensex pack were Bharti Airtel Ltd. (Rs. 317.35,+5.48%), ITC Ltd. (Rs. 233.30,+1.99%), Oil And Natural Gas Corporation Ltd. (Rs. 283.60,+1.92%), Power Grid Corporation of India Ltd. (Rs. 191.85,+1.86%), NTPC Ltd. (Rs. 164.25,+1.73%), among others.

The top losers of the BSE Sensex pack were State Bank of India (Rs. 254.05,-2.64%), ICICI Bank Ltd. (Rs. 255.00,-1.87%), Wipro Ltd. (Rs. 460.10,-1.03%), Lupin Ltd. (Rs. 1494.30,-0.99%), Mahindra & Mahindra Ltd. (Rs. 1164.40,-0.91%), among others.

Among the sectors, Power index was at 2004.47 up by 29.32 points or by 1.48%. Adani Power Ltd. (Rs. 26.45,+7.96%), Tata Power Company Ltd. (Rs. 71.75,+2.57%), Torrent Power Ltd. (Rs. 174.25,+2.23%), CESC Ltd. (Rs. 585.00,+1.87%), Power Grid Corporation of India Ltd. (Rs. 191.85,+1.86%),.

On the flip side, Bankex index was at 20938.96 down by -246.1 points or by -1.16%. Bank of Baroda (Rs. 162.75,-3.04%), State Bank of India (Rs. 254.05,-2.64%), Punjab National Bank (Rs. 137.20,-2.21%), IndusInd Bank Ltd. (Rs. 1051.80,-1.98%), ICICI Bank Ltd. (Rs. 255.00,-1.87%),.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2785 , shares advanced were 1647 while 958 shares declined and 180 were unchanged.

On the global front, European markets were lower amid continued political uncertainty in Italy and fading hopes of an OPEC production cut which pushed oil prices lower.

Manufacturing growth to remain flat in coming months: SBI Index

21/10/2016 17:31

Manufacturing growth is likely to remain flat and factory output may even continue to remain in the negative territory in the coming months, SBI said in a research report.

The yearly SBI Composite Index for October remained stationary at 50.2, compared to September. The monthly index declined marginally to 52.1 in October from 52.6 in September.

The SBI Composite Index, a leading indicator for manufacturing activity in Indian economy aims to foresee the periods of contraction and expansion.

An index value of 42 to 46 means (moderate decline), 46 to 50 (low decline), 50 to 52 (low growth), 52 to 55 (moderate growth) and above 55 (high growth). An index value of less than 42 large decline.

The Composite Index has mainly two indices namely SBI Monthly Composite Index and SBI Yearly Composite Index. A consistent negative (positive) month-on-month forecast in the index will lead to negative (positive) growth rate in year-on-year index after a while.

“We believe in the coming months of September and October, the manufacturing growth is likely to remain flat and IIP growth may even continue to remain in the negative territory,” SBI Research said in its Ecowrap Report.

The report noted that credit off-take on a year-on-year basis continues to be a laggard and stood at 10.4 per cent in September 30, as per the fortnightly data of all scheduled commercial banks (ASCB).

“We expect that the credit cycle will turn for the better in a gradual manner,” the report noted.

The domestic financial services major expects a faster rate of MCLR transmission by banks in the coming days as inflation will rapidly decelerate to sub 3.5 per cent in November and RBI will cut rates.

“We even believe that inflation will materially stay below 4 per cent beginning October, possibly for 3-4 months,” the report said.

SBI may relocate some branches after its merger: Bhattacharya

SBI may relocate some branches after its merger: Bhattacharya

08/09/2016 10:45

The State Bank of India (SBI) has said that it may relocate some branches after the merger of its associate banks into its fold, but none of them will be shut down.

Commenting on the issue, State Bank of India Chairperson Arundhati Bhattacharya told the media, “I don’t believe we will be closing down any branches. This is one area that is getting a lot of adverse publicity. We will be working with the synergies.”

“Obviously, if the same building has branches of three associate banks, it doesn’t make sense to keep them open. If that branch is moved away 60 km, it will have a better reach. We will be relocating a few of them,” she added.

As per reports, the merged entity, which will have a network of more than 24,000 branches, will continue to have the same number of branches.