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<keyword id="22661695" type="General" weightage="20" keywordseo="Regulatory-moves" source="Orion">Regulatory moves</keyword> discouraging <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword>' <keyword id="22661696" type="General" weightage="20" keywordseo="derivative-market-bets" source="Orion">derivative market bets</keyword> may help the <keyword id="59197" type="General" weightage="20" keywordseo="banking-system" source="Orion">banking system</keyword> garner the much-needed <keyword id="6496248" type="General" weightage="20" keywordseo="deposits" source="Orion">deposits</keyword>, <keyword id="46004" type="General" weightage="20" keywordseo="SBI-Chairman" source="Orion">SBI Chairman</keyword> <keyword id="1937145" type="General" weightage="20" keywordseo="Dinesh-Kumar-Khara" source="Orion">Dinesh Kumar Khara</keyword> has said. Khara said the budget announcements like the tweaks on the short-term and long-term capital gains will not lead to much gains from a deposit accretion perspective. "<keyword id="20031465" type="General" weightage="100" keywordseo="FO" source="keywords">F&amp;O</keyword> (future and options) kind of things are being discouraged for the retail (investor) by the regulator. Those who are resorting to such kind of an instrument, they might come back to the banking system," Khara told PTI over the weekend. It can be noted that concerns over losses incurred by 90 per cent of investors in the derivative trades have led to fears of household savings being blown in speculation rather than being deployed for productive purposes among policymakers. As per <keyword id="20033427" type="General" weightage="20" keywordseo="capital-markets" source="keywords">capital markets</keyword> regulator Sebi, retail investors lost Rs 52,000 crore in such activity in FY24 alone which necessitates a clampdown. Sebi has come up with a seven-point plan to reduce such trades, while some moves in the Union Budget are also targeted to reduce such activities. For the last three years, the deposit growth is unable to keep pace with credit expansion, and Khara said the money is going into alternative avenues like capital markets. He, however, stressed that the bank account is the primary avenue for parking the savings and continue to attract interest, and reminded that there was a phase of deposit growth trailing credit growth in 2011 as well witnessed by the banking system. At present, concerns are being raised about the wedge between the deposit and credit growth leading banks to go slower on granting loans, which can be be detrimental for the overall economic growth. <keyword id="19898108" type="General" weightage="20" keywordseo="SBI" source="keywords" meta.keywordsubtype="org" meta.entityname="SBI" meta.hostid="153" meta.entityid="SBI">SBI</keyword>, the country's largest lender which commands over a fifth of market share, is targeting a credit growth of 15 per cent in FY25 and a deposit growth of 8 per cent, Khara said. Stating that the bank will try to get the deposit growth at 10 per cent, he made it clear that the credit growth target can be achieved even with a slower pace of deposit growth of 8 per cent due to its liquidity position. The bank chose to deploy excess deposits in the past into its investment book and is currently unwinding the same as it caters to the credit demand, Khara said. He said the bank's liquidity coverage ratio stands at 128 per cent and it has decided to keep it over 110 per cent.

Discouraging retail play in F&O may help banks garner deposits: SBI Chairman

Kolkata, Jun 18 () State Bank of India (SBI) chairman Rajnish Kumar on Thursday said that there is enough liquidity available in the system and also interest rates have moderated to a large extent. Speaking at a webinar organised by Bharat Chamber of Commerce, Kumar said that both the RBI and the government have taken measures to bring back the economy, derailed by the pandemic, back on track. "The government and the RBI have taken measures to bring back the economy to the path of revival", he said. Kumar said the RBI has been giving calibrated responses quickly and ensured that there is enough liquidity in the system. According to him, interest rates have also moderated to a large extent. He said that government has taken steps to make direct bank transfers, a lot of emphasis on helping the MSMEs and announced reforms in the areas of agriculture, defence and mining for creating a favourable investment climate. "I believe the situation is returning to normal and many businesses are back to normal operating at 70 to 80 per cent capacity. Some of them have also started exports", he said. According to him, the rural economy will play a critical role in the revival process. The aviation, tourism, hospitality, services and construction sectors are the most affected, while agriculture is the least, Kumar said. Regarding the Supreme Court's observation on moratorium on loans that banks are charging 'interest on interest', Kumar said SBI has filed an application for intervention along with IBA. "The matter is sub-judice and better to wait till August", he said. Kumar also said that SBI is not charging higher interest rates for ratings downgrade. He said, "we cannot imagine post-COVID situation at the moment and also don't know when it will come." According to him, SBI's liquidity ratio of 143 per cent is not an indicator of the fact that the bank is not lending. Regarding SBI, he said that the bank has sanctioned loan applications of two lakh MSMEs under the guarantee emergency credit line. The MSMEs are managing this crisis very well, he said, adding that reassessment of working capital is going on. dc RG RG RG

Plenty of liquidity available in the system: SBI chairman

<ul><li>Several private lenders including Kotak Mahindra Bank and Yes Bank recently announced pay cuts as a cost cutting measure amid the coronavirus pandemic. </li><li>The chairman of India’s largest public sector bank State Bank of India (SBI), <keyword id="254056" type="PERSON" weightage="20" keywordseo="Rajnish-Kumar">Rajnish Kumar</keyword> said that the salaries are already so less, if pay cuts would be implemented, he would have to live on the streets. </li><li>According to the bank’s annual report, Kumar’s per day income stood at ₹ 8,092 in FY19, in contrast to 3.74 lakh earned by Aditya Puri of HDFC Bank, who is the highest paid bank chief. </li><li>However, the public bank chiefs get added perks like accommodation, which is exclusive of the salary. </li></ul>Several private lenders including Kotak Mahindra Bank and Yes Bank recently announced pay cuts as a cost cutting measure amid the coronavirus pandemic. While the chairman of India’s largest public sector bank State Bank of India (SBI), <a href="https://www.businesstoday.in/current/corporate/sbi-chairman-rajnish-kumar-jokes-on-pay-cut-road-pe-rehna-padega/story/406129.html">Rajnish Kumar said</a> that the salaries are already so less, if pay cuts would be implemented, he would have to “live on the streets”. He said this in a jovial way during a conference call with analysts. The statement has yet again raised the issue of widening pay gap among the private and public bank chiefs. Here’s how much the CEOs get paid in India’s top five private and government banks: <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Public lenders </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CEO salary in FY19 (Monthly) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Private Banks </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CEO salary in FY19 (Monthly) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">State Bank of India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2.42 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹89 lakh </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Punjab National Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2.77 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Axis Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹30 lakh </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank of Baroda </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2.74 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Mahindra Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹27 lakh </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank of India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2.38 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹22-26 lakh </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Union Bank of India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2.46 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IndusInd Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹16 lakh </td></tr></tbody></table> As of 2019, the disparity between the remuneration of state-owned and private <keyword id="611855" type="PERSON" weightage="20" keywordseo="Bank-CEOs">bank CEOs</keyword> increased by nearly ₹70,000 in two years. <a href="https://www.moneycontrol.com/news/business/economy/pay-gap-between-public-and-private-sector-bank-chiefs-widens-4371661.html">According to</a> a Mint analysis of public and private lenders, a public-sector bank chief had a daily compensation of ₹8,541, as per the FY19 annual reports. Private bank chiefs, on the other hand, were paid ₹2.48 lakh per day. However, the public bank chiefs get added perks like accommodation, which is exclusive of the salary. "The executive compensation in the public sector, as is well known, is lower than that in the private sector... If PSBs are required to compete with private sector banks on a level playing field, there is a good case for compensating them too on a competitive basis," <a href="http://archive.indianexpress.com/news/salaries-of-psu-bankers-need-to-go-up-bhatt/679619/">said</a> D Subbarao, former governor of the Reserve Bank of India during the 9th Global Banking Summit organised by the Indian Bankers’ Association and FICCI. See also: <a href="https://www.businessinsider.in/personal-finance/news/bharti-axa-life-renewal-income-grows-17-to-1359-crore-in-fy20/articleshow/76258273.cms">Bharti AXA Life posts 17% growth in renewal premiums to ₹1,359 crore in FY20</a> <a href="https://www.businessinsider.in/business/news/yes-bank-case-ed-raids-five-premises-of-cox-and-kings-in-mumbai/articleshow/76256791.cms?upcache=2">Yes Bank's top borrower Cox and Kings sees raids at five of its premises</a> <a href="https://www.businessinsider.in/business/startups/news/vijay-shekhar-sharma-binny-bansal-come-together-to-back-the-latest-vc-firm-arkam-and-its-not-a-batman-reference/articleshow/76255655.cms">Vijay Shekhar Sharma, Binny Bansal come together to back the latest VC firm Arkam ⁠— and it’s not a Batman reference</a>

SBI Chairman has brought back the debate on wide salary gap between private and government banks

New Delhi, Jun 2 () Stating that there is a very thin line between risk aversion and risk prudence, State Bank of India Chairman Rajnish Kumar on Tuesday said the banks are ready to finance but there are no takers for bankable loans. He also said the bank is very bullish about the Rs 3 lakh crore credit guarantee scheme for MSME, and through the scheme the government has indirectly infused Rs 30,000 crore into public sector banks. Speaking about criticism for parking deposit money with the RBI, Kumar said, there is deluge of funds but there is no commensurate demand for loan. So, banks have no choice but to park with RBI as there is risk aversion from the side of borrowers as well, he said while addressing India Inc at CII Annual meet. "I hear a lot about risk aversion, but the dividing line between risk aversion and risk prudence is very thin. One question which I have been asking is -- is there risk aversion only amongst lenders or there is risk aversion amongst borrowers also. Are they willing to leverage? Are they willing to invest?" he wondered. Citing an example, he said, when the government slashed corporate tax rate drastically in September last year, many were of the view that investment will take place, but it has not taken place. "As a banker and as the chairman of the largest bank, I am saying I have money, there are no takers of the money. Investment if you look in the last five years, the capex has gone down distinctly...no major projects have been announced. And by the way, the services sector particularly IT don't consume any major capital," he said. Ultimately, he said, it is the manufacturing or infrastructure sector, which consumes money. Between 2008 and 2015, it was the power sector which consumed maximum capital for putting up 75,000 MW capacity, he said. Kumar said that the corporate sector should not expect much from the government but have to be self-reliant or "atmanirbhar", given the fiscal position of the government. "Maybe the corporate sector would have to look for all the opportunities themselves," he said. He also said that if more has to be given to the system, banks would require capital support from the government. On the Rs 3 lakh crore credit guarantee scheme, Kumar said, risk weight for the scheme is zero and public sector banks do not have to provide any capital for this. So, in a way there is indirect capital infusion of Rs 30,000 crore, he said. "We are very bullish on this scheme. In a single day, we have disbursed 22,000 loans of worth Rs 3,000 crore. So, this is a very good scheme for supporting MSME sector," he said. The scheme is the biggest fiscal component of the Rs 20-lakh crore Self Reliant India Mission package announced by Finance Minister Nirmala Sitharaman last month. Under the scheme, 100 per cent guarantee coverage will be provided by National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested MUDRA borrowers, in the form of a guaranteed emergency credit line (GECL) facility. For this purpose, a corpus of Rs 41,600 crore was provided by the government spread over the current and the next three financial years. The scheme will be applicable to all loans sanctioned under GECL facility during the period from the date of announcement of the scheme to October 31 or till an amount of Rs 3 lakh crore is sanctioned under GECL, whichever is earlier. The main objective of the scheme is to provide an incentive to member lending institutions (MLIs) like banks, financial institutions (FIs) and non-banking financial companies (NBFCs) to increase access to, and enable availability of additional funding facility to MSME borrowers, in view of the economic distress caused by the COVID-19 crisis, by providing them 100 per cent guarantee for any losses suffered by them due to non-repayment of the GECL funding by borrowers. All MSME borrower accounts with an outstanding credit of up to Rs 25 crore as on February 29 which were less than or equal to 60 days past due as on that date, i.e., regular, SMA-0 and SMA-1 accounts, and with an annual turnover of up to Rs 100 crore would be eligible for GECL funding under the scheme. DP BAL

There is risk aversion at borrowers' end, says SBI Chairman

Mumbai, May 22 () The steps announced by the Reserve Bank of India including reduction in repo rate and extension of moratorium on term loans for another three months will help in quick revival of the economy, State Bank of India chairman Rajnish Kumar said. The RBI on Friday slashed repo rate by 40 basis points to 4 per cent. The central bank extended the moratorium period for the repayment of loans by another three months till August 31, 2020, and also increased bank exposure to corporates to 30 per cent of the group's net worth from the current limit of 25 per cent. "The entire effort of the government and the RBI is to revive the growth in the economy and at the same time recognising the difficulties that industries are facing. All the measures around reduction in repo rate, moratorium and increase in the limit on group exposures will be helpful in revival of the economy," Kumar told reporters through a video call on Friday. The measures are a calibrated response to the situation which is emerging on account to the disruptions caused due to COVID-19, he said. Kumar said, so far, 20 per cent of the SBI borrowers have opted for the three-month moratorium. He said the extension of moratorium on repayment of loans will be helpful to the industry. Also, with the extension of moratorium, there is no urgent need for a dispensation from the RBI. "Right now, the moratorium will take care of the situation around the cash flow disruptions. I would not be obsessed with one-time restructuring at this particular point of time when we have time till August 31," he said. Kumar, however, said banks can still go for restructuring of stressed accounts, if required, as per the June 7 circular of RBI. When asked about extending moratorium to NBFCs and housing finance companies, Kumar said that it would be given on a case to case basis. "We would decide on a case to case basis. We will have to look at their (NBFCs/HFCs) cash flows and take a decision," he said. SBI will take a decision on reduction in deposit and lending rates post the ALCO meet, Kumar said. HV MR MR

RBI measures to help revive economy: SBI Chairman

By Lalit K Jha Washington, Oct 24 () The Indian economy is in a transition phase largely owing to important reforms undertaken in the last few years, a top Indian banker has said exuding confidence that the country's growth rate will be back on track. "Growth can come back. Because of a lot of (reforms), economy is in transition. We had GST (goods and services tax). We had IBC (insolvency and bankruptcy code). All these reforms have been implemented in last three years. And as a result, we are in a transition period. A lot of cleanup has happened in the corporate sector," SBI Chairman Rajnish Kumar told in an interview. Kumar, 61, was in Washington last week as part of the Indian delegation led by Union Finance Minister Nirmala Sitharaman to attend the annual meetings of the World Bank and the International Monetary Fund. "When there is transition, I think, some disruption always happens," he said. Kumar further said in terms of development, India is still not in the "developed" category. Besides, the per capita income is still low. There is huge scope for growth in India, and demographics is also not against India. Unlike many other developed countries where they are facing challenges on account of demographics, India does not have that kind of challenge at least for the time being, he said. "And that is where the growth can come back," the top Indian banker said. "So, in my view we are seeing the bottom as far as economic growth is concerned. Now it will go up... because sector by sector, if we look at agriculture I'm finding this year position is better even in terms of credit, manufacturing is slow and private sector investment in infrastructure is slow," he said. Observing that the Modi government over the past few years has brought banking to the doorsteps of every household, Kumar said the activation of these accounts have reached almost 90 per cent. Besides, balances of these accounts are now reaching a level where servicing these accounts is "not a loss-making proposition" for the banks, he noted. "Average balance in these accounts is touching Rs 1,900, about Rs 230 billion in June was the balance in the savings bank account," he said, adding that there is benefit to the economy when one is able to bring such a large population under the banking channels. Noting that the biggest challenge in the banking sector was about the functioning of the public sector banks, Kumar said recapitalisation has happened in a big way but sectoral issues need to be addressed like the power, road and telecom sectors. "These sectoral issues impact the working of the banks, particularly on the asset quality front," he said. He further said that in this government there is no political interference in the banking sector. "State Bank of India has been more immune to any pressures because the systems are such that it is very difficult for any Chairman, any MD to influence any decision-making process," he said. When asked about cryptocurrency, which has been banned in India, the SBI chairman said the way the world is moving towards digitisation, at some stage, a regulated cryptocurrency would be a better bet than an unregulated one. "Let's see. Because there's a dark side of the internet also. There can be misuse of the digital currencies. That is why regulation is must," he said adding that efforts are on how to bring technologies like blockchain into functioning of the banks. LKJ DRR

Indian economy in transition phase, growth to come back: SBI Chairman

New Delhi, Jun 21 () SBI chairman Rajnish Kumar assured shareholders that the likely job cuts and salary reductions in the wake of COVID-19 pandemic will leave 'relatively low level' of stress on the bank as the proportion of business from government and quasi-government sector is high. In a letter to the bank's shareholders, Kumar exuded confidence that despite economic headwinds, the robust performance achieved by the country's largest lender State Bank of India (SBI) in 2019-20 will continue in the current financial year. "…despite the economic headwinds, the Bank is well prepared to adjust to the challenges posed by the COVID-19 pandemic. I am more than hopeful that the robust performance achieved in FY20 will continue in FY21 as well," the SBI chairman said. Observing that the full impact of COVID-19 outbreak will be felt in the current financial year, Kumar said from the bank's point of view, the true impact of COVID pandemic must also consider the behavioral impact on bank's customers, and composition of portfolio, among others. "For instance, likely job cuts and salary reductions will have relatively low level of stress on account of higher proportion of Govt/ Quasi Govt. sector customers," he said in the letter, as per SBI's annual report. "As of now, only 21.8 per cent of the customers have availed the benefit of moratorium. Furthermore, the Bank was able to achieve 98 per cent branch operability as well as 91 per cent alternate channel operability during the period of lockdown," Kumar added. Nevertheless, an elaborate Business Continuity Plan (BCP) is in place to manage disruptions, he said. SBI has traditionally been the banker of choice to the Government of India (GOI) and is an accredited banker to major Central Government Ministries and Departments, the annual report said. It said SBI is contributing significantly towards e-governance initiatives taken by the GOI, and is instrumental in the development of e-solutions for both Central and state governments. "This has facilitated their transition to the online mode, providing greater efficiency and transparency, resulting in ease of doing business and relaxation of living for the citizens," it said. SBI's total government business turnover was Rs 52,62,643 crore during fiscal 2019-20. The bank registered its highest ever yearly net profit in 2019-20 at Rs 14,488 crore. The net profit was Rs 862 crore during 2018-19. Amidst the COVID-19 pandemic outbreak, the outlook of the global economy has become very uncertain and world is likely to experience a deep rooted recession next year, Kumar said. The RBI expects contraction in the Indian economy during the current financial year. Kumar also said that the pandemic has changed the preference of customers and it is a big opportunity for the bank as there is now more acceptability to adopt digital channels for doing banking transactions. He said the bank will further scale up YONO (all-encompassing digital platform) and has set a target of doubling user registrations in the next six months, and further strengthen platform through new product offerings like end-to-end home loans, pre-approved car loan and personal gold loans. NKD CS RVK

Likely job cuts, salary reductions to have relatively low impact on SBI: Chairman

New Delhi, Jun 2 () The rupee is likely to be stable if crude oil prices stay at moderate level and fiscal deficit is under check, State Bank of India Chairman Rajnish Kumar said on Tuesday. So far, the rupee has been stable against the dollar, he said at the CII Annual session. "If the crude oil (prices) remain where they are, then there will be much less pressure on it. Our largest imports were either crude oil or gold. So gold import is practically zero and crude import is down because of softness in the prices. So that's why pressure on the rupee is much less...So far the restraints shown by the government and the trend is likely to continue in the future," he said. The rupee has not witnessed a sharp spike in the past two months and has been trading in the range of 75-76 per dollar. Brent crude, the global price benchmark, was trading around USD 39 per barrel while oil for the Indian basket was quoted near USD 35 per barrel on Tuesday. "I am expecting that currency is going to be stable," he said. With regard to lending to the NBFC sector, Kumar said SBI has been giving financial support to all such institutions which have satisfactory relation with the bank. DP MR MR

Rupee likely to stay stable if crude prices remain at current levels: SBI chairman

New Delhi, Dec 21 () SBI Chairman Rajnish Kumar on Saturday said most banks will be in a good position with respect to stressed assets by March and there is no dearth of liquidity in the system for lending.
 He added that there are opportunities to lend in sectors such as infrastructure and consumer lending as there is not much of a decline in demand from consumers.
 "By March 31st, most of the banks will be in a good position with respect to stressed assets," Kumar said at the 92nd Annual Convention of industry chamber FICCI here.
 On transmission of monetary policy, he said the banks cannot lower rates beyond a threshold due to asset liability mismatch issues.
 Kumar stated that there is no shortage of capital in the system, but the corporates are not borrowing enough and not utilising their capacities well.
 On lending to the telecom sector for the next round of spectrum auctions, he said, "For us lending to the telecom sector for spectrum is completely unsecured. On paper it is secured as the auction is to be done by government but practically it is totally unsecured."
 "So in such circumstances, banks will have to evaluate carefully before lending to the sector as the probability of default is very high," Kumar said. KPM ABM
ABM

Banking industry's NPA situation to improve by fiscal-end: SBI chairman

New Delhi, Feb 15 () SBI Chairman Rajnish Kumar on Saturday said banks will "have to pay the price" in case any telecom firm files for bankruptcy, a day after the Supreme Court made it clear that telecom companies will have to pay the Rs 1.47 lakh crore in past dues. The chief of the country's largest lender State Bank of India (SBI) said it is in the "wait-and-watch mode" and the onus of ensuring telecom companies' compliance with the Supreme Court order lies with the Department of Telecommunications (DoT) under the government. "If there is a negative impact on any enterprise, it impacts a larger ecosystem, whether it is banks, whether it is employees, whether they are vendors, consumers, so everybody gets impacted. So, that impact, when it comes, we will have to pay the price," Kumar said, when asked about the impact on banks if telcos move towards bankruptcy. He was speaking to reporters on the sidelines of the unveiling of artworks namely 'Manasvi' and 'Tapasvi' at the Local Head Office (LHO) here. Around 400 computers, more than 2,000 microchips, over 400 keyboards and above 200 discarded credit cards were used to create the two artworks. He added that the closure of any corporate impacts the country's economy and, therefore, the endeavour is to prevent the shutting down of any enterprise. Asked if any telco account is currently classified as non-performing asset (NPA), he said there are two accounts, Aircel and RCom, that went into bankruptcy. Besides, he said that SBI will not pass on the burden of the hike in premium of deposit insurance to its customers. "We never recovered the premium from customers, we will not do it now either. As far as the impact of the rise from 10 paise to 12 paise is concerned, earlier if we were paying Rs 3,000 crore now we will pay Rs 3,600 crore premium," he said. Following the failure of a number of cooperative banks, with Mumbai-based PMC Bank being the latest and the largest last year, the government hiked the deposit insurance coverage to Rs 5 lakh from Rs 1 lakh in the Union Budget 2020-21. "The premium is something which, we consider, will increase from 10 paise to 12 paisa per Rs 100 for the time being. So, the impact on banks' balance sheets is not likely to be much," RBI Deputy Governor B P Kanungo said recently. RBI Governor Shaktikanta Das on Saturday said the central bank will have internal discussions in case there are any issues arising out of the Supreme Court order regarding adjusted gross revenue (AGR) dues to be paid by telecom companies. On Friday, the Supreme Court threatened contempt proceedings against top executives of Bharti Airtel, Vodafone Idea and other telecom firms for failing to comply with its directive to pay an estimated Rs 1.47 lakh crore in past dues. However, Das did not offer any specific comments about the order, which might have ramifications on banks in terms of their exposure to the financially-stressed telecom companies. The payments to be made by the companies include Rs 53,000 crore by Vodafone Idea, Rs 35,500 crore by Bharti Airtel and Rs 14,000 crore by the now-defunct Tata Teleservices. RSN HRS

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