Tag: State Bank Of India

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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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.

SBI Q1 net slips 31.7% at Rs 2,520.96 cr

12/08/2016 13:07

India’s biggest public sector lender the State Bank of India (SBI) has reported a 31.7 per cent drop in net profit for the first quarter ended June 30, 2016 at Rs 2,520.96 crore as provisions jumped.

In Q1 FY 2015-16, the state-run lender had posted a net profit of Rs 3,692.43 crore, the State Bank of India (SBI) said in a filing to the Bombay Stock Exchange (BSE).

Net interest income climbed 4.23 per cent at Rs 14,312 crore in Q1 FY 2016-17 from Rs 13,732 crore in the same period a year ago.

Other income rose 44 per cent at Rs 7,335 crore in Q1 FY 2016-17 from Rs 5,088 crore in the same period a year ago.

Total income climbed 9.4 per cent at Rs 48,929 crore in Q1 FY 2016-17 from Rs 44,730.9 crore in the same period a year ago.

Provisions (other than tax) and contingencies rose 85 per cent to Rs 7,413 crore in Q1 FY 2016-17 from Rs 4,000 crore in the same period a year ago.

The percentage of gross non-performing assets (NPA) climbed to 6.94 per cent as at June 30, 2016 from 4.29 per cent a year ago, while that of net NPA rose to 4.05 per cent from 2.24 per cent.

Shares of SBI jumped 8.26 per cent to Rs 245.7 a piece at 13:02 PM IST on the BSE on Friday as Q1 profit beat estimates.

SBI plans to raise $1.5 bn from overseas bond

SBI plans to raise $1.5 bn from overseas bond

24/06/2016 11:47

Public-sector lender, State Bank of India said that it plans to raise USD 1.5 billion (about Rs 10,000 crore) from overseas markets via bonds during the current fiscal to fund its expansion.

The bank’s board is meeting on June 29 to take a decision in this regard, SBI said in a filing to BSE.

The board would examine the status and decide on long-term fund raising in single or multiple tranches of up to USD 1,500 million through a public offer or private placement of senior unsecured notes in US dollar or any other convertible currency during 2016-17, it said.

Meanwhile, shares of the Bank were trading at Rs 205.65 apiece, down 5.45 per cent from the previous close at 11:48 hours on BSE.

SBI leads mobile banking chart with over 38 pct market share

SBI leads mobile banking chart with over 38 pct market share

22/03/2016 00:36

State Bank of India, the nation’s largest lender, is also the leader in digital banking in the country in both volume and value terms, handling over 38 per cent mobile banking transactions a month, reported PTI.

The bank, quoting the Reserve Bank data for December 2015, today said in December 2015, SBI accounted for 38.44 per cent of total mobile banking transactions in terms of volume and 35.97 per cent market share in terms of value.

SBI leads the mobile banking space with 151.83 lakh transactions worth Rs 17,636 crore in December 2015.

As against this, the closest rivals, who are all private sector lenders, pale. ICICI Bank, the second largest lender, had just about 70.01 lakh transactions, followed by Axis Bank with 60.28 lakh and HDFC Bank with a low 39.13 lakh, in volume terms.

Commenting on the achievement, SBI chairperson Arundhati Bhattacharya said in terms of mobile banking volume, the bank has been consistently maintaining leadership position since April 2015.

“Till a few months back, our customers were doing mostly low to medium value fund transfers and m-commerce transactions on mobile. But with the launch of our dedicated user-friendly mobile apps for non-retail customers, the average transaction size has shot up more than five times,” she said.

In May 2015, SBI launched mobile banking variant StateBankAnywhere-Saral which is meant for small and medium firms with single authorised signatory/user. Another variant StateBankAnywhere- Corporate for large corporate customers was launched in October 2015.

These apps have been receiving significant response from on-the-move corporate customers and are facilitating a large number of high-value transactions through their mobiles.

State Bank has a mobile app for each segment covering a wide range of customer needs. The app ‘State Bank App Kart’ gives its users a seamless user interface for installing, opening or upgrading mobile applications of the State Bank Group.

Its another platform is SMS Banking with the app called SBI Quick that facilitates inquiry related options for everyone even from basic phones.

Then the bank also has a mobile wallet ‘State Bank Buddy’ with a user base of around 2.5 million.

SBI gets board nod to raise remaining Rs 5,000 cr in debt

SBI gets board nod to raise remaining Rs 5,000 cr in debt

10/03/2016 10:40

Banking major State Bank of India said that its board has approved raising the remaining Rs 5,000 crore of the Rs 12,000-crore fund raising programme through private placement of Basel-III compliant debt instruments.

Earlier in December, the bank had announced raising Rs 12,000 crore through issue of debt instruments in tranches. SBI, on previous two occasions, had informed the exchanges that it raised Rs 4,000 crore and Rs 3,000 crore in two tranches through issue of debt instruments as part of the Rs 12,000 crore fund raising programme.

The lender in a filing to the BSE said, “The Committee of Directors for Capital Raising met on March 9, 2016 to review the implementation of its resolution dated December 21, 2015 with regard to issue of debt instruments”.

It authorised the Bank to “consider raising the residual amount (out of the overall approval obtained for raising the debt capital amount of Rs 12000 crores), either by way of issue of AT-I/Tier-ll instrument or any other debt instrument at appropriate time(s), by way of private placement, in such number of tranches, as may be considered appropriate,” the filing said.

Earlier on February 19, the bank informed BSE that it raised Rs 3,000 crore from Basel-III compliant bonds to fund business growth.

Meanwhile, shares of the Bank were trading at Rs 182 apiece, down 0.79 per cent from the previous close at 10:39 hours on BSE.