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BREAKINGVIEWS-India's dividend demand will prove self-defeating
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, June 18 (Reuters Breakingviews) - India's expectations from its state-owned enterprises are unrealistic. New Delhi wants the profitable ones to make larger and more frequent dividend payments. That can boost government revenue, but the push overlooks companies' shrinking cash piles.
State companies paid out record dividends worth 1.5 trillion rupees ($17.31 billion) during the year ended March, with Oil and Natural Gas Corporation ONGC.NS and lenders including State Bank of India SBI.NS among the top payers. Overall, public sector companies distributed about a quarter of total dividends in the last financial year despite accounting for one tenth of India's market capitalisation.
Now the South Asian country is asking the cohort to increase dividends by about 25% for the financial year to the end of March 2026, Bloomberg reported this month, citing sources, and make the payments on a quarterly basis rather than annually. This looks like a step in the opposite direction of the government's own guideline from November, which relaxed the minimum yearly dividend requirement to the lower of 30% of net profit or 4% of net worth.
There is mounting budget angst. Earlier this year, Arunish Chawla, a secretary in the ministry of finance, argued high payouts are why mutual funds ought to include state-run firms in their investment portfolios. One unspoken aim may be to support public valuations. This would, in turn, help the government to raise revenue by selling state assets. Ensuring payouts at three-month intervals also could help stabilise inflows: tax income turned lumpy after GDP growth slowed through part of last year. The latest personal income tax cuts also will eat into future revenue.
Companies have limited room to step up, however. The cumulative free cash flows after deducting common dividends at eight large non-financial state-owned enterprises stood at 615 billion rupees ($7.14 billion) in March 2024, may have turned negative as of March, and could fall further by 2026, per estimates by Fitch Ratings. That's because the capital expenditure of companies like energy producer NTPC NTPC.NS and utilities provider Power Grid PGRD.NS is rising.
Investors typically shun or discount government-controlled companies precisely because they are vulnerable to official meddling in how they manage their finances. Making too high demands on the state sector is one way to ensure it shrinks sooner rather than later.
Follow Shritama Bose on Linkedin and X.
CONTEXT NEWS
The Indian government is asking state-run companies to increase dividend payouts by about 25% during the financial year to March 31, 2026, to bolster finances in a volatile global environment, Bloomberg reported on June 2, citing unnamed people with knowledge of the matter.
The government is requesting companies to make these payments on a quarterly basis rather than annually, the report added, and wants to collect about 900 billion rupees ($10.5 billion) through dividends in the year through March 2026 compared with 740.2 billion rupees received in the previous year.
State-run firms' shares beat the broader market on total returns https://www.reuters.com/graphics/BRV-BRV/bypreornrve/chart.png
(Editing by Una Galani; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, June 18 (Reuters Breakingviews) - India's expectations from its state-owned enterprises are unrealistic. New Delhi wants the profitable ones to make larger and more frequent dividend payments. That can boost government revenue, but the push overlooks companies' shrinking cash piles.
State companies paid out record dividends worth 1.5 trillion rupees ($17.31 billion) during the year ended March, with Oil and Natural Gas Corporation ONGC.NS and lenders including State Bank of India SBI.NS among the top payers. Overall, public sector companies distributed about a quarter of total dividends in the last financial year despite accounting for one tenth of India's market capitalisation.
Now the South Asian country is asking the cohort to increase dividends by about 25% for the financial year to the end of March 2026, Bloomberg reported this month, citing sources, and make the payments on a quarterly basis rather than annually. This looks like a step in the opposite direction of the government's own guideline from November, which relaxed the minimum yearly dividend requirement to the lower of 30% of net profit or 4% of net worth.
There is mounting budget angst. Earlier this year, Arunish Chawla, a secretary in the ministry of finance, argued high payouts are why mutual funds ought to include state-run firms in their investment portfolios. One unspoken aim may be to support public valuations. This would, in turn, help the government to raise revenue by selling state assets. Ensuring payouts at three-month intervals also could help stabilise inflows: tax income turned lumpy after GDP growth slowed through part of last year. The latest personal income tax cuts also will eat into future revenue.
Companies have limited room to step up, however. The cumulative free cash flows after deducting common dividends at eight large non-financial state-owned enterprises stood at 615 billion rupees ($7.14 billion) in March 2024, may have turned negative as of March, and could fall further by 2026, per estimates by Fitch Ratings. That's because the capital expenditure of companies like energy producer NTPC NTPC.NS and utilities provider Power Grid PGRD.NS is rising.
Investors typically shun or discount government-controlled companies precisely because they are vulnerable to official meddling in how they manage their finances. Making too high demands on the state sector is one way to ensure it shrinks sooner rather than later.
Follow Shritama Bose on Linkedin and X.
CONTEXT NEWS
The Indian government is asking state-run companies to increase dividend payouts by about 25% during the financial year to March 31, 2026, to bolster finances in a volatile global environment, Bloomberg reported on June 2, citing unnamed people with knowledge of the matter.
The government is requesting companies to make these payments on a quarterly basis rather than annually, the report added, and wants to collect about 900 billion rupees ($10.5 billion) through dividends in the year through March 2026 compared with 740.2 billion rupees received in the previous year.
State-run firms' shares beat the broader market on total returns https://www.reuters.com/graphics/BRV-BRV/bypreornrve/chart.png
(Editing by Una Galani; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
BREAKINGVIEWS-India’s wealth boom is within reach for foreigners
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, June 12 (Reuters Breakingviews) - Foreign money managers are pouring into India to cater to the rising rich. Many of them may find success easier to come by than they did in neighbouring China.
The race kicked off in earnest this week when BlackRock BLK.N won regulatory approval to launch a wealth business, within a month of securing a go-ahead for its mutual fund operations. The world’s largest asset manager led by Larry Fink is back in the country after exiting a local joint venture in 2018. This time the U.S. firm is in partnership with Jio Financial Services JIOF.NS, an upstart spun off from tycoon Mukesh Ambani’s $227 billion Reliance Industries RELI.NS.
Others present also are digging deeper to tap everyday savers. Armed with a new licence, HSBC HSBA.L will push into 20 new cities in search of wealth clients. Its rival Standard Chartered STAN.L is pivoting toward affluent clients and away from single product relationships. Meanwhile, Blackstone bought wealth services provider ASK Investment Managers in 2022, whose parent now plans to launch a mutual fund.
Underway is a dramatic shift in how Indians put money to work. Households' net financial wealth, after deducting liabilities, rose 249% to $3 trillion over the nearly 12 years to the end of March 2023, per researchers at the Reserve Bank of India. Bank deposits account for 43% of financial assets, down from 51% in March 2012.
In effect, households are moving deposits into riskier instruments. Pumped up by a high-voltage marketing campaign targeting mom-and-pop savers, the mutual fund industry’s net assets under management stood at 72 trillion rupees ($845 billion) as of May, rising 22.5% year-on-year. Mutual funds’ share of net financial savings was 8.4% at the end of March 2023, up from less than 1% a decade ago, per data from industry group Association of Mutual Funds in India and research firm Crisil Intelligence. And there’s plenty of runway for growth; the industry counts just 3% of the population as customers.
Beyond everyday savers, the number of Indian ultra-high net worth individuals will increase to 19,908, a 50% increase during the five years to 2028, property consultancy Knight Frank reckons, faster than in any other geography. There’s also rising interest from richer parts of the 35 million-strong Indian diaspora living to invest at home.
To be sure, by some measure India currently has just one twelfth of the investable wealth assets under management that China had in 2020. Ping An Asset Management alone shepherds funds nearly equivalent in value to those of the entire Indian asset management industry. Yet the smaller opportunity may be easier for Western financial firms hungry for growth to tap.
A sluggish economy, poor stock market returns, and geopolitical tensions dim the allure of China. Asset managers including Fidelity and Schroders have cut costs and scaled back expansion plans in the People’s Republic. India not only saw GDP growth of 7.4% in the March quarter, but its stock market is booming too.
Unlike in China where equities have miserably failed to reflect decades of strong economic growth, Indian stocks are better correlated to GDP. Mutual fund investors in India are largely equity-oriented; in China, 68% of flows were into fixed income instruments in 2022, per Fitch Ratings.
Of course, local competition is formidable. There are 51 mutual fund houses, and the largest by assets under management are backed by Indian banks with a foreign partner: State Bank of India’s SBI.NS joint venture with France’s Amundi AMUN.PA leads, followed by ICICI Bank ICBK.NS with Prudential PRU.L.
What’s new is the potential for digitisation to drive down high expenses. Thanks to a distributor-led model, the asset-weighted median expense ratio for equity funds, a measure of cost, was 1.78% in India, higher than 1.75% for China and 1.37% for Korea in 2022, data from Morningstar shows.
In partnering with Jio Financial, whose telecom affiliate counts 477 million subscribers, BlackRock probably sees an opportunity to scale up quickly and use technology to cut out the middleman. Only 41% of mutual funds' assets under management are sourced directly from investors, per AMFI and Crisil Intelligence, and the share is probably lower by number of accounts.
If executed well, the BlackRock-Jio duo will disrupt the status quo and eat into the business of homegrown technology-led brokers like Zerodha and the soon-to-go-public Groww, which sells one in every four “systematic-investment plans” where individuals commit a fixed amount, usually monthly, to mutual funds. Both privately-owned companies might be worth up to $7 billion each. Singapore's StashAway, backed by Hamilton Lane and others, has secured over $1 billion in assets under management through digital sourcing within just four years of its launch in 2017.
Not everyone feels the prize is within reach. Some of the new strategic partnerships emerging look more like an exit. UBS UBSG.S is acquiring 5% of Mumbai-listed $5 billion 360 One ONEW.NS and is transferring the onshore wealth business it inherited through the acquisition of Credit Suisse to the Indian group. The Swiss bank closed its own Indian wealth business roughly a decade ago.
The India opportunity also has some hard-looking longer-term limits. The real value BlackRock might bring to the table for Indian investors probably rests in deploying their money offshore. That edge is dulled by capital controls; New Delhi imposes a $250,000 limit on sending money overseas. That looks more liberal than Beijing’s long-standing limit of $50,000, but India has ramped up taxes on outbound remittances exceeding $11,700. For now, at least, there is plenty to do within India.
Follow Shritama Bose on LinkedIn and X.
Indians are moving savings out of bank deposits https://www.reuters.com/graphics/BRV-BRV/byvrxzkznve/chart.png
Indians are moving savings out of bank deposits https://www.reuters.com/graphics/BRV-BRV/byvrxzkznve/chart.png
India has six times the number of trading accounts as China https://www.reuters.com/graphics/BRV-BRV/klpymxdxwpg/chart.png
India's market cap to GDP ratio is steadily rising https://www.reuters.com/graphics/BRV-BRV/zdpxalxydvx/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, June 12 (Reuters Breakingviews) - Foreign money managers are pouring into India to cater to the rising rich. Many of them may find success easier to come by than they did in neighbouring China.
The race kicked off in earnest this week when BlackRock BLK.N won regulatory approval to launch a wealth business, within a month of securing a go-ahead for its mutual fund operations. The world’s largest asset manager led by Larry Fink is back in the country after exiting a local joint venture in 2018. This time the U.S. firm is in partnership with Jio Financial Services JIOF.NS, an upstart spun off from tycoon Mukesh Ambani’s $227 billion Reliance Industries RELI.NS.
Others present also are digging deeper to tap everyday savers. Armed with a new licence, HSBC HSBA.L will push into 20 new cities in search of wealth clients. Its rival Standard Chartered STAN.L is pivoting toward affluent clients and away from single product relationships. Meanwhile, Blackstone bought wealth services provider ASK Investment Managers in 2022, whose parent now plans to launch a mutual fund.
Underway is a dramatic shift in how Indians put money to work. Households' net financial wealth, after deducting liabilities, rose 249% to $3 trillion over the nearly 12 years to the end of March 2023, per researchers at the Reserve Bank of India. Bank deposits account for 43% of financial assets, down from 51% in March 2012.
In effect, households are moving deposits into riskier instruments. Pumped up by a high-voltage marketing campaign targeting mom-and-pop savers, the mutual fund industry’s net assets under management stood at 72 trillion rupees ($845 billion) as of May, rising 22.5% year-on-year. Mutual funds’ share of net financial savings was 8.4% at the end of March 2023, up from less than 1% a decade ago, per data from industry group Association of Mutual Funds in India and research firm Crisil Intelligence. And there’s plenty of runway for growth; the industry counts just 3% of the population as customers.
Beyond everyday savers, the number of Indian ultra-high net worth individuals will increase to 19,908, a 50% increase during the five years to 2028, property consultancy Knight Frank reckons, faster than in any other geography. There’s also rising interest from richer parts of the 35 million-strong Indian diaspora living to invest at home.
To be sure, by some measure India currently has just one twelfth of the investable wealth assets under management that China had in 2020. Ping An Asset Management alone shepherds funds nearly equivalent in value to those of the entire Indian asset management industry. Yet the smaller opportunity may be easier for Western financial firms hungry for growth to tap.
A sluggish economy, poor stock market returns, and geopolitical tensions dim the allure of China. Asset managers including Fidelity and Schroders have cut costs and scaled back expansion plans in the People’s Republic. India not only saw GDP growth of 7.4% in the March quarter, but its stock market is booming too.
Unlike in China where equities have miserably failed to reflect decades of strong economic growth, Indian stocks are better correlated to GDP. Mutual fund investors in India are largely equity-oriented; in China, 68% of flows were into fixed income instruments in 2022, per Fitch Ratings.
Of course, local competition is formidable. There are 51 mutual fund houses, and the largest by assets under management are backed by Indian banks with a foreign partner: State Bank of India’s SBI.NS joint venture with France’s Amundi AMUN.PA leads, followed by ICICI Bank ICBK.NS with Prudential PRU.L.
What’s new is the potential for digitisation to drive down high expenses. Thanks to a distributor-led model, the asset-weighted median expense ratio for equity funds, a measure of cost, was 1.78% in India, higher than 1.75% for China and 1.37% for Korea in 2022, data from Morningstar shows.
In partnering with Jio Financial, whose telecom affiliate counts 477 million subscribers, BlackRock probably sees an opportunity to scale up quickly and use technology to cut out the middleman. Only 41% of mutual funds' assets under management are sourced directly from investors, per AMFI and Crisil Intelligence, and the share is probably lower by number of accounts.
If executed well, the BlackRock-Jio duo will disrupt the status quo and eat into the business of homegrown technology-led brokers like Zerodha and the soon-to-go-public Groww, which sells one in every four “systematic-investment plans” where individuals commit a fixed amount, usually monthly, to mutual funds. Both privately-owned companies might be worth up to $7 billion each. Singapore's StashAway, backed by Hamilton Lane and others, has secured over $1 billion in assets under management through digital sourcing within just four years of its launch in 2017.
Not everyone feels the prize is within reach. Some of the new strategic partnerships emerging look more like an exit. UBS UBSG.S is acquiring 5% of Mumbai-listed $5 billion 360 One ONEW.NS and is transferring the onshore wealth business it inherited through the acquisition of Credit Suisse to the Indian group. The Swiss bank closed its own Indian wealth business roughly a decade ago.
The India opportunity also has some hard-looking longer-term limits. The real value BlackRock might bring to the table for Indian investors probably rests in deploying their money offshore. That edge is dulled by capital controls; New Delhi imposes a $250,000 limit on sending money overseas. That looks more liberal than Beijing’s long-standing limit of $50,000, but India has ramped up taxes on outbound remittances exceeding $11,700. For now, at least, there is plenty to do within India.
Follow Shritama Bose on LinkedIn and X.
Indians are moving savings out of bank deposits https://www.reuters.com/graphics/BRV-BRV/byvrxzkznve/chart.png
Indians are moving savings out of bank deposits https://www.reuters.com/graphics/BRV-BRV/byvrxzkznve/chart.png
India has six times the number of trading accounts as China https://www.reuters.com/graphics/BRV-BRV/klpymxdxwpg/chart.png
India's market cap to GDP ratio is steadily rising https://www.reuters.com/graphics/BRV-BRV/zdpxalxydvx/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
BREAKINGVIEWS-Rate cut signals India's discontent with growth
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, June 9 (Reuters Breakingviews) - India's status as the fastest-growing major economy isn't impressing everyone. The country's central bank sprung a surprise on Friday, slashing the key policy rate by 50 basis points and the cash reserve ratio for lenders by twice as much. Under new Governor Sanjay Malhotra, the Reserve Bank of India is putting more emphasis on supporting GDP. That's fine so long as it can fulfil its inflation-targeting mandate when the need arises.
India last month claimed its position as the world's fourth-largest economy, overtaking Japan. Yet the 6.5% clip at which it grew during the year to the end of March was its slowest pace in four years. That's well behind the average 7.8% headline number the World Bank estimates the South Asian country needs to achieve its aim of high-income status by 2047, the 100th anniversary of independence.
That's the goal Malhotra seems focused on. Barely six months into his role, the former bureaucrat has reduced the central bank's policy rate by a whole percentage point to 5.5%. Further cuts face a higher bar, he said on Friday, justifying the front-loading by citing the need for certainty in an environment of global churn.
By bringing rate cuts forward, Malhotra may avoid a potential monsoon-induced spike in inflation from getting in the way of monetary easing. It marks a departure from the styles of former governors: Urjit Patel, who stepped down in 2018, instituted inflation targeting as the bank's top policy goal and his successor Shaktikanta Das pushed an intense clampdown on unsecured lending.
The size of the rate move will nudge banks led by the State Bank of India SBI.NS to hasten transmission of the past cuts through loan rates. Lending more is one way to charge up tepid urban spending. Overall consumption accounts for 57% of GDP. Yet there are limits to the RBI's latest actions.
Although the lower reserve ratio for banks will release liquidity worth 2.5 trillion rupees ($29 billion) by December 2025, an almost equivalent or higher sum will be sucked out of the banking system as the RBI unwinds its short bets on the U.S. dollar made to cushion a falling rupee, economists at HDFC Bank reckon. Ultimately the central bank left its GDP forecast of 6.5% for the year ending March 2026 untouched.
Under Malhotra, India's monetary policy may eventually be more supportive to the government's desire for faster growth. Such an outcome would reduce friction between the two sides but the thesis will only be truly tested when retail inflation, currently near a six-year low of 3.16% in April, ticks up higher.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
The Reserve Bank of India cut its key policy rate by a larger-than-expected 50 basis points on June 6 to 5.5% and changed its monetary policy stance from 'accommodative' to 'neutral', stating that it may have limited space for further easing.
"Certainty in the uncertain environment was necessary; hence the front-loading of rate cuts," RBI Governor Sanjay Malhotra said at a press conference on the same day.
He announced a reduction in the cash reserve ratio for banks by one percentage point to 3% in four tranches from September to November 2025, which would release liquidity worth 2.5 trillion rupees ($29 billion) to banks by December 2025.
Banks have been slow to pass on rate cuts to customers https://www.reuters.com/graphics/BRV-BRV/gkpljnrmwpb/chart.png
(Editing by Una Galani; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, June 9 (Reuters Breakingviews) - India's status as the fastest-growing major economy isn't impressing everyone. The country's central bank sprung a surprise on Friday, slashing the key policy rate by 50 basis points and the cash reserve ratio for lenders by twice as much. Under new Governor Sanjay Malhotra, the Reserve Bank of India is putting more emphasis on supporting GDP. That's fine so long as it can fulfil its inflation-targeting mandate when the need arises.
India last month claimed its position as the world's fourth-largest economy, overtaking Japan. Yet the 6.5% clip at which it grew during the year to the end of March was its slowest pace in four years. That's well behind the average 7.8% headline number the World Bank estimates the South Asian country needs to achieve its aim of high-income status by 2047, the 100th anniversary of independence.
That's the goal Malhotra seems focused on. Barely six months into his role, the former bureaucrat has reduced the central bank's policy rate by a whole percentage point to 5.5%. Further cuts face a higher bar, he said on Friday, justifying the front-loading by citing the need for certainty in an environment of global churn.
By bringing rate cuts forward, Malhotra may avoid a potential monsoon-induced spike in inflation from getting in the way of monetary easing. It marks a departure from the styles of former governors: Urjit Patel, who stepped down in 2018, instituted inflation targeting as the bank's top policy goal and his successor Shaktikanta Das pushed an intense clampdown on unsecured lending.
The size of the rate move will nudge banks led by the State Bank of India SBI.NS to hasten transmission of the past cuts through loan rates. Lending more is one way to charge up tepid urban spending. Overall consumption accounts for 57% of GDP. Yet there are limits to the RBI's latest actions.
Although the lower reserve ratio for banks will release liquidity worth 2.5 trillion rupees ($29 billion) by December 2025, an almost equivalent or higher sum will be sucked out of the banking system as the RBI unwinds its short bets on the U.S. dollar made to cushion a falling rupee, economists at HDFC Bank reckon. Ultimately the central bank left its GDP forecast of 6.5% for the year ending March 2026 untouched.
Under Malhotra, India's monetary policy may eventually be more supportive to the government's desire for faster growth. Such an outcome would reduce friction between the two sides but the thesis will only be truly tested when retail inflation, currently near a six-year low of 3.16% in April, ticks up higher.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
The Reserve Bank of India cut its key policy rate by a larger-than-expected 50 basis points on June 6 to 5.5% and changed its monetary policy stance from 'accommodative' to 'neutral', stating that it may have limited space for further easing.
"Certainty in the uncertain environment was necessary; hence the front-loading of rate cuts," RBI Governor Sanjay Malhotra said at a press conference on the same day.
He announced a reduction in the cash reserve ratio for banks by one percentage point to 3% in four tranches from September to November 2025, which would release liquidity worth 2.5 trillion rupees ($29 billion) to banks by December 2025.
Banks have been slow to pass on rate cuts to customers https://www.reuters.com/graphics/BRV-BRV/gkpljnrmwpb/chart.png
(Editing by Una Galani; Production by Ujjaini Dutta)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
State Bank Of India Approves To Examine Status, Decide On Long Term Fund Raising Up To $3 Billion
May 20 (Reuters) - State Bank of India SBI.NS:
STATE BANK OF INDIA - APPROVED TO EXAMINE STATUS, DECIDE ON LONG TERM FUND RAISING UP TO US$ 3 BILLION
STATE BANK OF INDIA - FUND RAISING VIA PUBLIC OFFER OR PRIVATE PLACEMENT IN USD
Further company coverage: SBI.NS
(([email protected];))
May 20 (Reuters) - State Bank of India SBI.NS:
STATE BANK OF INDIA - APPROVED TO EXAMINE STATUS, DECIDE ON LONG TERM FUND RAISING UP TO US$ 3 BILLION
STATE BANK OF INDIA - FUND RAISING VIA PUBLIC OFFER OR PRIVATE PLACEMENT IN USD
Further company coverage: SBI.NS
(([email protected];))
India's Yes Bank expects Japan's SMBC to maintain at least 20% stake, CEO says (May 15)
Corrects paragraph 6 of May 15 story to clarify SMBC will acquire the stake from SBI, not State Bank
Yes Bank eyes cheaper capital and better growth post SMBC deal, CEO says
Yes Bank to retain retail focus through deal, with SMBC backing future funding
Regulatory approvals for deal expected by September
By Siddhi Nayak
MUMBAI, May 16 (Reuters) - India's Yes Bank YESB.NS expects Japan's Sumitomo Mitsui Banking Corp (SMBC) to maintain at least 20% stake in the lender but said that regulatory requirements may be keeping it from raising shareholding significantly beyond that, the bank's chief executive said.
SMBC on Friday said it had signed a definitive agreement to take a 20% stake in Mumbai-based Yes Bank, a deal that marks the largest cross-border merger and acquisition deal in India's financial sector.
SMBC, is a unit of Sumitomo Mitsui Financial Group 8316.T and is Japan's second-biggest bank.
"For potential capital raises in the future, SMBC would be contributing," Yes Bank's CEO Prashant Kumar told Reuters in an interview on Thursday.
"It also means they (SMBC) would not like to get their stake below 20%."
As part of the deal, SMBC will acquire a 13.19% stake from State Bank of India SBI.NS, also its largest investor, and an aggregate of 6.81% from other banks that had rescued it as a result of the regulator-led restructuring in March 2020.
SMBC's stake buy stopped short of the 25% shareholding, which under Indian regulations triggers an open offer for another 26% from public shareholders at the same price offered to a strategic investor.
The "logical" reason why SMBC did not take a higher stake in Yes Bank was probably to avoid triggering an open offer of shares, and being classified as a promoter, which carries significant regulatory obligations, Kumar said.
Large shareholders with control over a company's operations are termed as "promoters" under Indian regulations and being categorised as one carries tougher reporting requirements.
Kumar expects the regulatory approvals for the deal to come in by September.
The transaction is subject to regulatory approvals from the Reserve Bank of India, Competition Commission of India and shareholders of the Bank.
Shares of Yes Bank have risen 7.5% since the announcement of the deal and, on Wednesday, Moody's Ratings said that SMBC's stake acquisition is credit positive for the Indian lender.
A re-rating, if it happens, will open doors raising funds at a cheaper cost and also expand lending opportunities, Kumar said.
SMBC's focus on large corporate customers will also help the bank expand in areas like transaction banking, he said.
Yes Bank, however, will remain focused on retail lending primarily, which formed 41.2% of its loan book as on March-end.
"I don't think the retail-corporate mix, will change post the deal; we would be more focused towards retail," Kumar said.
(Reporting by Siddhi Nayak, editing by David Evans)
(([email protected]; x.com/siddhiVnayak;))
Corrects paragraph 6 of May 15 story to clarify SMBC will acquire the stake from SBI, not State Bank
Yes Bank eyes cheaper capital and better growth post SMBC deal, CEO says
Yes Bank to retain retail focus through deal, with SMBC backing future funding
Regulatory approvals for deal expected by September
By Siddhi Nayak
MUMBAI, May 16 (Reuters) - India's Yes Bank YESB.NS expects Japan's Sumitomo Mitsui Banking Corp (SMBC) to maintain at least 20% stake in the lender but said that regulatory requirements may be keeping it from raising shareholding significantly beyond that, the bank's chief executive said.
SMBC on Friday said it had signed a definitive agreement to take a 20% stake in Mumbai-based Yes Bank, a deal that marks the largest cross-border merger and acquisition deal in India's financial sector.
SMBC, is a unit of Sumitomo Mitsui Financial Group 8316.T and is Japan's second-biggest bank.
"For potential capital raises in the future, SMBC would be contributing," Yes Bank's CEO Prashant Kumar told Reuters in an interview on Thursday.
"It also means they (SMBC) would not like to get their stake below 20%."
As part of the deal, SMBC will acquire a 13.19% stake from State Bank of India SBI.NS, also its largest investor, and an aggregate of 6.81% from other banks that had rescued it as a result of the regulator-led restructuring in March 2020.
SMBC's stake buy stopped short of the 25% shareholding, which under Indian regulations triggers an open offer for another 26% from public shareholders at the same price offered to a strategic investor.
The "logical" reason why SMBC did not take a higher stake in Yes Bank was probably to avoid triggering an open offer of shares, and being classified as a promoter, which carries significant regulatory obligations, Kumar said.
Large shareholders with control over a company's operations are termed as "promoters" under Indian regulations and being categorised as one carries tougher reporting requirements.
Kumar expects the regulatory approvals for the deal to come in by September.
The transaction is subject to regulatory approvals from the Reserve Bank of India, Competition Commission of India and shareholders of the Bank.
Shares of Yes Bank have risen 7.5% since the announcement of the deal and, on Wednesday, Moody's Ratings said that SMBC's stake acquisition is credit positive for the Indian lender.
A re-rating, if it happens, will open doors raising funds at a cheaper cost and also expand lending opportunities, Kumar said.
SMBC's focus on large corporate customers will also help the bank expand in areas like transaction banking, he said.
Yes Bank, however, will remain focused on retail lending primarily, which formed 41.2% of its loan book as on March-end.
"I don't think the retail-corporate mix, will change post the deal; we would be more focused towards retail," Kumar said.
(Reporting by Siddhi Nayak, editing by David Evans)
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India extends financial support to debt-ridden Maldives
MUMBAI, May 12 (Reuters) - India said on Monday it has extended financial support to the Maldives by rolling over New Delhi's subscription to a $50 million treasury bill by another year at the request of the archipelago's government.
The State Bank of India SBI.NS has extended the subscription to the bill issued by the Maldives' finance ministry, India's high commission there said in a statement on its X account.
Maldives' Foreign Minister Abdulla Khaleel thanked the Indian government for extending "crucial financial support".
"This timely assistance reflects the close bonds of friendship between Maldives and India and will support the Government's ongoing efforts to implement fiscal reforms for economic resilience," he said on X.
China and India remain the Maldives' biggest creditor nations and both regional rivals vie for influence in the strategically located Indian Ocean nation, whose economy has struggled with low foreign exchange reserves and substantial external debt, sparking fears of a default.
According to World Bank data, the country's total public and publicly guaranteed debt rose to $9.4 billion - or more than 134% of GDP - in the last quarter of 2024, a more than $1 billion uptick year-on-year.
"The credit rating downgrades by Fitch and Moody's in the second half of 2024 have further constrained the country's ability to access markets for new financing," the World Bank said in a report on the Maldives, warning that the country's debt servicing in 2025 and 2026 will see a spike.
(Reporting by Sudipto Ganguly in Mumbai and Karin Strohecker in London; editing by Andrew Heavens)
(([email protected];))
MUMBAI, May 12 (Reuters) - India said on Monday it has extended financial support to the Maldives by rolling over New Delhi's subscription to a $50 million treasury bill by another year at the request of the archipelago's government.
The State Bank of India SBI.NS has extended the subscription to the bill issued by the Maldives' finance ministry, India's high commission there said in a statement on its X account.
Maldives' Foreign Minister Abdulla Khaleel thanked the Indian government for extending "crucial financial support".
"This timely assistance reflects the close bonds of friendship between Maldives and India and will support the Government's ongoing efforts to implement fiscal reforms for economic resilience," he said on X.
China and India remain the Maldives' biggest creditor nations and both regional rivals vie for influence in the strategically located Indian Ocean nation, whose economy has struggled with low foreign exchange reserves and substantial external debt, sparking fears of a default.
According to World Bank data, the country's total public and publicly guaranteed debt rose to $9.4 billion - or more than 134% of GDP - in the last quarter of 2024, a more than $1 billion uptick year-on-year.
"The credit rating downgrades by Fitch and Moody's in the second half of 2024 have further constrained the country's ability to access markets for new financing," the World Bank said in a report on the Maldives, warning that the country's debt servicing in 2025 and 2026 will see a spike.
(Reporting by Sudipto Ganguly in Mumbai and Karin Strohecker in London; editing by Andrew Heavens)
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India's SBI set for biggest weekly drop in over 2 months
** Shares of State Bank of India SBI.NS slip 3.9%, on course for biggest weekly loss since February 28; up 0.8% on Friday
** India's biggest lender by assets posted a nearly 10% drop in Q4 profit on May 3
** Stock set for first weekly loss after three straight weeks of gains
** SBI rated "buy", on average, by analysts, according to data from LSEG
** SBI down 3.3% so far in 2025 vs a 4.5% fall in Nifty PSU bank index .NIFTYPSU
(Reporting by Yagnoseni Das in Bengaluru)
(([email protected];))
** Shares of State Bank of India SBI.NS slip 3.9%, on course for biggest weekly loss since February 28; up 0.8% on Friday
** India's biggest lender by assets posted a nearly 10% drop in Q4 profit on May 3
** Stock set for first weekly loss after three straight weeks of gains
** SBI rated "buy", on average, by analysts, according to data from LSEG
** SBI down 3.3% so far in 2025 vs a 4.5% fall in Nifty PSU bank index .NIFTYPSU
(Reporting by Yagnoseni Das in Bengaluru)
(([email protected];))
EXCLUSIVE-India's top bourse seeks government intervention in IPO standoff with regulator, sources say
NSE writes to finance ministry in mid-April for IPO clearance
NSE's 'no objection' application for IPO still pending with SEBI
NSE questions SEBI's "neutrality" in options market decisions
NSE seeking SEBI IPO approval since 2016
By Shubham Batra and Jayshree P Upadhyay
NEW DELHI/MUMBAI, May 8 (Reuters) - India's largest exchange, National Stock Exchange, is asking the finance ministry to intervene in a years-long standoff with the country's markets regulator over its planned IPO, three sources with direct knowledge of the matter said.
NSE, the world's largest derivatives exchange, has been trying to go public since 2016 but has failed to secure regulatory approval due to pending legal cases and governance shortfalls. Its main domestic rival BSE Ltd BSEL.NS is listed.
Its decision to ask the government to intervene marks an escalation in the rare standoff between India's largest exchange and its markets regulator. An IPO, if cleared, would help large investors in the exchange including Life Insurance Corporation of India LIFI.NS, State Bank of India SBI.NS, Morgan Stanley and Canada Pension Investment Plan Board find an exit after years.
NSE's letter to the finance ministry requesting assistance came after its latest application in March to secure a 'no objection certificate (NOC)' from the Securities and Exchange Board of India (SEBI) was not cleared, according to the sources who asked not to be identified because they were not authorised to speak with media.
The exchange had made similar requests in November 2019, twice in 2020, and again in August 2024.
NSE, SEBI and the finance ministry did not respond to emailed requests for comment.
"The letter requests the Ministry of Finance to engage with the newly appointed SEBI Chairman to address and resolve the concerns raised by SEBI regarding NSE's pending public offer," one source said.
NSE's appeal to the government has not been previously reported.
Tuhin Kanta Pandey, who became SEBI chairman in March, last month had said the regulator was working to resolve issues surrounding NSE's public offer but will not allow commercial interests to take precedence over the general public interest.
"Different departments at SEBI had raised concerns," a second source said. "Until all departments are satisfied that issues have been addressed, an NOC is unlikely to be issued."
One of the key concerns flagged by SEBI is on governance shortfalls at the exchange, including a delay in appointing a chairman to its board. NSE, in its letter to the finance ministry, dismissed those concerns and blamed SEBI for a delay in approving a candidate it recommended for chairman in 2022.
SEBI had also raised concerns about NSE's process of appointing top management. NSE told the ministry its processes are compliant with SEBI rules, according to the letter.
NSE's letter also questions the regulator's "neutrality" in recent decisions which have hurt its business interests more than those of competitor BSE, citing certain SEBI decisions on new rules for the futures and options market.
NSE also questioned a recent SEBI proposal asking exchanges to disinvest their holdings in clearing corporations. This could raise costs and undermine market stability, the exchange told the government in its letter.
($1 = 84.6075 Indian rupees)
(Reporting by Shubham Batra in New Delhi and Jayshree P Upadhyay in Mumbai; Editing by Lincoln Feast.)
(([email protected];))
NSE writes to finance ministry in mid-April for IPO clearance
NSE's 'no objection' application for IPO still pending with SEBI
NSE questions SEBI's "neutrality" in options market decisions
NSE seeking SEBI IPO approval since 2016
By Shubham Batra and Jayshree P Upadhyay
NEW DELHI/MUMBAI, May 8 (Reuters) - India's largest exchange, National Stock Exchange, is asking the finance ministry to intervene in a years-long standoff with the country's markets regulator over its planned IPO, three sources with direct knowledge of the matter said.
NSE, the world's largest derivatives exchange, has been trying to go public since 2016 but has failed to secure regulatory approval due to pending legal cases and governance shortfalls. Its main domestic rival BSE Ltd BSEL.NS is listed.
Its decision to ask the government to intervene marks an escalation in the rare standoff between India's largest exchange and its markets regulator. An IPO, if cleared, would help large investors in the exchange including Life Insurance Corporation of India LIFI.NS, State Bank of India SBI.NS, Morgan Stanley and Canada Pension Investment Plan Board find an exit after years.
NSE's letter to the finance ministry requesting assistance came after its latest application in March to secure a 'no objection certificate (NOC)' from the Securities and Exchange Board of India (SEBI) was not cleared, according to the sources who asked not to be identified because they were not authorised to speak with media.
The exchange had made similar requests in November 2019, twice in 2020, and again in August 2024.
NSE, SEBI and the finance ministry did not respond to emailed requests for comment.
"The letter requests the Ministry of Finance to engage with the newly appointed SEBI Chairman to address and resolve the concerns raised by SEBI regarding NSE's pending public offer," one source said.
NSE's appeal to the government has not been previously reported.
Tuhin Kanta Pandey, who became SEBI chairman in March, last month had said the regulator was working to resolve issues surrounding NSE's public offer but will not allow commercial interests to take precedence over the general public interest.
"Different departments at SEBI had raised concerns," a second source said. "Until all departments are satisfied that issues have been addressed, an NOC is unlikely to be issued."
One of the key concerns flagged by SEBI is on governance shortfalls at the exchange, including a delay in appointing a chairman to its board. NSE, in its letter to the finance ministry, dismissed those concerns and blamed SEBI for a delay in approving a candidate it recommended for chairman in 2022.
SEBI had also raised concerns about NSE's process of appointing top management. NSE told the ministry its processes are compliant with SEBI rules, according to the letter.
NSE's letter also questions the regulator's "neutrality" in recent decisions which have hurt its business interests more than those of competitor BSE, citing certain SEBI decisions on new rules for the futures and options market.
NSE also questioned a recent SEBI proposal asking exchanges to disinvest their holdings in clearing corporations. This could raise costs and undermine market stability, the exchange told the government in its letter.
($1 = 84.6075 Indian rupees)
(Reporting by Shubham Batra in New Delhi and Jayshree P Upadhyay in Mumbai; Editing by Lincoln Feast.)
(([email protected];))
Yes Bank Clarfies On Report Of Talks With Japan's SMBC
May 6 (Reuters) - Yes Bank Ltd YESB.NS:
YES BANK LTD - ROUTINELY EXPLORES OPPORTUNITIES AIMED AT ENHANCING SHAREHOLDER VALUE
YES BANK LTD - SUCH DISCUSSIONS ARE PRELIMINARY, DO NOT WARRANT A DISCLOSURE
YES BANK LTD: INFORMATION PERTAINING TO DISCUSSIONS IN ARTICLE IS SPECULATIVE, NOT FACTUALLY CORRECT
YES BANK LTD - CLARFIES ON REPORT OF TALKS WITH JAPAN'S SMBC
Further company coverage: YESB.NS
(([email protected];))
May 6 (Reuters) - Yes Bank Ltd YESB.NS:
YES BANK LTD - ROUTINELY EXPLORES OPPORTUNITIES AIMED AT ENHANCING SHAREHOLDER VALUE
YES BANK LTD - SUCH DISCUSSIONS ARE PRELIMINARY, DO NOT WARRANT A DISCLOSURE
YES BANK LTD: INFORMATION PERTAINING TO DISCUSSIONS IN ARTICLE IS SPECULATIVE, NOT FACTUALLY CORRECT
YES BANK LTD - CLARFIES ON REPORT OF TALKS WITH JAPAN'S SMBC
Further company coverage: YESB.NS
(([email protected];))
India's SBI falls as narrower net interest margin weighs on Q4 profit
** State Bank of India SBI.NS falls 2.2% to 783.80 rupees
** Stock biggest loser on benchmark Nifty PSU banks index .NIFTYPSU, which is down 0.2%
** India's biggest lender by assets posts nearly 10% drop in Q4 profit, pressured by narrower net interest margin
** Domestic NIM fell to 3.15% from 3.47% last year
** Jefferies says given SBI's large market share in loans, co's growth target of 12%-13% in 2025-26 appears sustainable
** SBI's NIM is weaker compared to private peers - ICICI Securities
** Motilal Oswal cuts its earnings estimates by 4.6%/5.0% for FY26/FY27 due to higher provisions and NIM pressures
** BOBCAPS sees FY26 domestic NIMs under pressure from RBI rate cuts, but impact to be partly offset by bank's lower repo-linked loans
** Peers HDFC Bank HDBK.NS and ICICI Bank ICBK.NS posted strong Q4 results
** Kotak Mahindra Bank KTKM.NS posted a bigger-than-expected profit drop
** SBI, HDBK, ICBK and KTKM rated "buy" on avg - LSEG
** YTD, SBI up 0.6%
(Reporting by Yagnoseni Das in Bengaluru)
(([email protected];))
** State Bank of India SBI.NS falls 2.2% to 783.80 rupees
** Stock biggest loser on benchmark Nifty PSU banks index .NIFTYPSU, which is down 0.2%
** India's biggest lender by assets posts nearly 10% drop in Q4 profit, pressured by narrower net interest margin
** Domestic NIM fell to 3.15% from 3.47% last year
** Jefferies says given SBI's large market share in loans, co's growth target of 12%-13% in 2025-26 appears sustainable
** SBI's NIM is weaker compared to private peers - ICICI Securities
** Motilal Oswal cuts its earnings estimates by 4.6%/5.0% for FY26/FY27 due to higher provisions and NIM pressures
** BOBCAPS sees FY26 domestic NIMs under pressure from RBI rate cuts, but impact to be partly offset by bank's lower repo-linked loans
** Peers HDFC Bank HDBK.NS and ICICI Bank ICBK.NS posted strong Q4 results
** Kotak Mahindra Bank KTKM.NS posted a bigger-than-expected profit drop
** SBI, HDBK, ICBK and KTKM rated "buy" on avg - LSEG
** YTD, SBI up 0.6%
(Reporting by Yagnoseni Das in Bengaluru)
(([email protected];))
State Bank of India targets 12-13% loan growth on tariff uncertainty
Recasts with management commentary throughout
By Siddhi Nayak
MUMBAI, May 3 (Reuters) - State Bank of India SBI.NS, the country's biggest lender by assets, aims for loan growth of 12%-13% in 2025-26, almost flat from the previous year to take account of the impact of global tariffs, its Chairman said on Saturday.
U.S. President Donald Trump's tariffs have sent shockwaves through financial markets, shaken investor confidence and complicated the task of forward-planning.
"The uncertainty on tariffs is going to impact the overall economic scenario and investment scenario," C.S. Setty said at a conference in Mumbai.
SBI's loan growth was around 12.03% for 2024-25 and deposits grew by 9.48%.
SBI's corporate loan book pipeline was 3.4 trillion rupees ($40.24 billion) as of the end of March, Setty said, adding deposit growth of 9-10% was expected for this year.
Earlier in the day, SBI reported a nearly 10% drop in net profit for the January-March quarter, pressured by a narrower net interest margin, although it beat analysts' estimates.
Net profit was 186.43 billion rupees for the bank's fourth quarter, compared with a record profit of 206.98 billion rupees a year earlier, but higher than 177.39 billion rupees, according to data compiled by LSEG.
The bank's net interest income, or the difference between interest earned on loans and paid on deposits, increased 2.7% to 427.75 billion rupees.
But its domestic net interest margin, the difference between the interest rate earned and the rate paid out, fell to 3.15%, below the 3.47% result a year earlier.
When interest rates fall, lenders usually cut lending rates faster than deposit rates, which can squeeze their profit margins until deposit rates adjust.
Setty said the pressure on net interest margins will continue assuming another 50-bps rate cut by the Reserve Bank of India in this year.
Separately, the bank's board approved raising 250 billion rupees through equity capital in this year, which Setty said was largely to augment SBI's capital ratios. The timing of the fund raise will be "market determined," he added.
($1 = 84.4990 Indian rupees)
(Reporting by Siddhi Nayak; Editing by Edmund Klamann and Barbara Lewis)
(([email protected]; x.com/siddhiVnayak;))
Recasts with management commentary throughout
By Siddhi Nayak
MUMBAI, May 3 (Reuters) - State Bank of India SBI.NS, the country's biggest lender by assets, aims for loan growth of 12%-13% in 2025-26, almost flat from the previous year to take account of the impact of global tariffs, its Chairman said on Saturday.
U.S. President Donald Trump's tariffs have sent shockwaves through financial markets, shaken investor confidence and complicated the task of forward-planning.
"The uncertainty on tariffs is going to impact the overall economic scenario and investment scenario," C.S. Setty said at a conference in Mumbai.
SBI's loan growth was around 12.03% for 2024-25 and deposits grew by 9.48%.
SBI's corporate loan book pipeline was 3.4 trillion rupees ($40.24 billion) as of the end of March, Setty said, adding deposit growth of 9-10% was expected for this year.
Earlier in the day, SBI reported a nearly 10% drop in net profit for the January-March quarter, pressured by a narrower net interest margin, although it beat analysts' estimates.
Net profit was 186.43 billion rupees for the bank's fourth quarter, compared with a record profit of 206.98 billion rupees a year earlier, but higher than 177.39 billion rupees, according to data compiled by LSEG.
The bank's net interest income, or the difference between interest earned on loans and paid on deposits, increased 2.7% to 427.75 billion rupees.
But its domestic net interest margin, the difference between the interest rate earned and the rate paid out, fell to 3.15%, below the 3.47% result a year earlier.
When interest rates fall, lenders usually cut lending rates faster than deposit rates, which can squeeze their profit margins until deposit rates adjust.
Setty said the pressure on net interest margins will continue assuming another 50-bps rate cut by the Reserve Bank of India in this year.
Separately, the bank's board approved raising 250 billion rupees through equity capital in this year, which Setty said was largely to augment SBI's capital ratios. The timing of the fund raise will be "market determined," he added.
($1 = 84.4990 Indian rupees)
(Reporting by Siddhi Nayak; Editing by Edmund Klamann and Barbara Lewis)
(([email protected]; x.com/siddhiVnayak;))
Top Indian court scraps JSW Steel's bid to acquire Bhushan Power, CNBC-TV18 reports
MUMBAI, May 2 (Reuters) - India's top court has rejected JSW Steel's JSTL.NS resolution plan to acquire Bhushan Power and Steel four years after the takeover, and ordered liquidation of the debt-ridden steelmaker, local television channel CNBC-TV18 reported on Friday.
The Supreme Court said that JSW Steel's plan to acquire Bhushan Power was "illegal" and should not have been accepted by the latter's committee of creditors, CNBC-TV18 reported, without providing details.
Shares of JSW Steel dropped 5% after the news.
JSW Steel and Bhushan Power did not immediately respond to Reuters' email seeking comment.
JSW Steel was the successful resolution applicant with a 197 billion-rupee ($2.35 billion) bid for Bhushan Power and the acquisition was completed in 2021.
Bhushan Power owed over 470 billion rupees to financial creditors when it was short-listed by the Reserve Bank of India to be admitted under the country's insolvency and bankruptcy code in 2017.
Punjab National Bank had initiated criminal proceedings in 2019 against the former board of directors of Bhushan Power after the lender discovered fraud amounting to 38 billion rupees in the accounts of the company.
Punjab National Bank PNBK.NS and State Bank of India SBI.NS, which led the committee of creditors, also did not respond to Reuters' emails.
State Bank of India SBI.NS trimmed gains on Friday, while Punjab National Bank PNBK.NS was last down 0.7%.
($1 = 83.8440 Indian rupees)
(Reporting by Siddhi Nayak; Editing by Sonia Cheema)
(([email protected]; x.com/siddhiVnayak;))
MUMBAI, May 2 (Reuters) - India's top court has rejected JSW Steel's JSTL.NS resolution plan to acquire Bhushan Power and Steel four years after the takeover, and ordered liquidation of the debt-ridden steelmaker, local television channel CNBC-TV18 reported on Friday.
The Supreme Court said that JSW Steel's plan to acquire Bhushan Power was "illegal" and should not have been accepted by the latter's committee of creditors, CNBC-TV18 reported, without providing details.
Shares of JSW Steel dropped 5% after the news.
JSW Steel and Bhushan Power did not immediately respond to Reuters' email seeking comment.
JSW Steel was the successful resolution applicant with a 197 billion-rupee ($2.35 billion) bid for Bhushan Power and the acquisition was completed in 2021.
Bhushan Power owed over 470 billion rupees to financial creditors when it was short-listed by the Reserve Bank of India to be admitted under the country's insolvency and bankruptcy code in 2017.
Punjab National Bank had initiated criminal proceedings in 2019 against the former board of directors of Bhushan Power after the lender discovered fraud amounting to 38 billion rupees in the accounts of the company.
Punjab National Bank PNBK.NS and State Bank of India SBI.NS, which led the committee of creditors, also did not respond to Reuters' emails.
State Bank of India SBI.NS trimmed gains on Friday, while Punjab National Bank PNBK.NS was last down 0.7%.
($1 = 83.8440 Indian rupees)
(Reporting by Siddhi Nayak; Editing by Sonia Cheema)
(([email protected]; x.com/siddhiVnayak;))
State Bank Of India Says Pravin Raghavendra, Deputy MD & COO Will Be Superannuating From Services
April 30 (Reuters) - State Bank of India SBI.NS:
STATE BANK OF INDIA - PRAVIN RAGHAVENDRA, DEPUTY MD & COO WILL BE SUPERANNUATING FROM SERVICES
Source text: [ID:]
Further company coverage: SBI.NS
(([email protected];))
April 30 (Reuters) - State Bank of India SBI.NS:
STATE BANK OF INDIA - PRAVIN RAGHAVENDRA, DEPUTY MD & COO WILL BE SUPERANNUATING FROM SERVICES
Source text: [ID:]
Further company coverage: SBI.NS
(([email protected];))
India's SBI Life hits 6-month high as analysts cheer new business strength
** Shares of SBI Life Insurance Company SBIL.NS rise as much as 9.6% to 1,762 rupees, highest level since Oct. 21
** Stock last up 4%, among the few stocks trading higher in benchmark Nifty 50 .NSEI, last down 1.2%
** Co reported 10% on-year growth in Q4 value of new business, or expected profit from new policies
** Jefferies ("Buy") says VNB growth of 10% in Q4 "surprised positively", raises VNB estimates for FY26-27 by 7%
** Macquarie ("Neutral") says VNB growth in-line but margins (at 30.5%) "very big surprise"
** Emkay ("Buy") calls VNB margins "impressive performance", raises TP to 1,950 rupees from 1,850 rupees and dials up VNB margin estimates for FY26-27 by 50 bps
** YTD shares up 21%
(Reporting by Ashish Chandra and Hritam Mukherjee in Bengaluru)
(([email protected] (+91 7982114624))
** Shares of SBI Life Insurance Company SBIL.NS rise as much as 9.6% to 1,762 rupees, highest level since Oct. 21
** Stock last up 4%, among the few stocks trading higher in benchmark Nifty 50 .NSEI, last down 1.2%
** Co reported 10% on-year growth in Q4 value of new business, or expected profit from new policies
** Jefferies ("Buy") says VNB growth of 10% in Q4 "surprised positively", raises VNB estimates for FY26-27 by 7%
** Macquarie ("Neutral") says VNB growth in-line but margins (at 30.5%) "very big surprise"
** Emkay ("Buy") calls VNB margins "impressive performance", raises TP to 1,950 rupees from 1,850 rupees and dials up VNB margin estimates for FY26-27 by 50 bps
** YTD shares up 21%
(Reporting by Ashish Chandra and Hritam Mukherjee in Bengaluru)
(([email protected] (+91 7982114624))
India's SBI Life quarterly profit flat, group insurance demand slows
April 24 (Reuters) - India's SBI Life Insurance Company SBIL.NS posted flat year-on-year fourth-quarter profit on Thursday amid a slowdown in group insurance business.
Profit rose 0.3% to 8.14 billion rupees ($95.5 million) for the quarter ended March 31 from 8.10 billion rupees a year earlier.
Analysts said heightened competition in the group insurance category has affected SBI Life's premiums earned in the segment.
Peers ICICI Prudential Life Insurance ICIR.NS and HDFC Life Insurance HDFL.NS reported a rise in quarterly profit, boosted by their group insurance offerings.
SBI Life's net premium income fell about 5% to 238.61 billion rupees as single premiums dropped nearly 73% while first-year premiums rose about 7%.
The company's value of new business (VNB), or expected profit from new policies - one of the key metrics for insurers - rose 10% year-on-year.
Its annualised premium equivalent (APE) sales, which is the total value of all single- and recurring-premium policies, rose 2% to 54.5 billion rupees, as per a Reuters calculation.
Demand for market or unit-linked insurance plans (ULIP) dropped as India's stock markets underwent a sharp correction.
Market-linked insurance plans, which have a lower profit margin compared to term policies, accounted for 64% of SBI Life's overall product mix by individual APE during the fiscal year, compared with 60% in the previous fiscal year.
VNB margins contracted to 27.8% for the fiscal year from 28.1% a year earlier.
($1 = 85.2640 Indian rupees)
(Reporting by Shivani Tanna in Bengaluru; Editing by Mrigank Dhaniwala)
(([email protected];))
April 24 (Reuters) - India's SBI Life Insurance Company SBIL.NS posted flat year-on-year fourth-quarter profit on Thursday amid a slowdown in group insurance business.
Profit rose 0.3% to 8.14 billion rupees ($95.5 million) for the quarter ended March 31 from 8.10 billion rupees a year earlier.
Analysts said heightened competition in the group insurance category has affected SBI Life's premiums earned in the segment.
Peers ICICI Prudential Life Insurance ICIR.NS and HDFC Life Insurance HDFL.NS reported a rise in quarterly profit, boosted by their group insurance offerings.
SBI Life's net premium income fell about 5% to 238.61 billion rupees as single premiums dropped nearly 73% while first-year premiums rose about 7%.
The company's value of new business (VNB), or expected profit from new policies - one of the key metrics for insurers - rose 10% year-on-year.
Its annualised premium equivalent (APE) sales, which is the total value of all single- and recurring-premium policies, rose 2% to 54.5 billion rupees, as per a Reuters calculation.
Demand for market or unit-linked insurance plans (ULIP) dropped as India's stock markets underwent a sharp correction.
Market-linked insurance plans, which have a lower profit margin compared to term policies, accounted for 64% of SBI Life's overall product mix by individual APE during the fiscal year, compared with 60% in the previous fiscal year.
VNB margins contracted to 27.8% for the fiscal year from 28.1% a year earlier.
($1 = 85.2640 Indian rupees)
(Reporting by Shivani Tanna in Bengaluru; Editing by Mrigank Dhaniwala)
(([email protected];))
Tycoon Vijay Mallya loses appeal against UK bankruptcy order
Adds Mallya response in paragraph 7
LONDON, April 9 (Reuters) - Indian tycoon Vijay Mallya on Wednesday lost an appeal against a bankruptcy order made by London's High Court over a more than 1 billion-pound ($1.28 billion) debt to lenders including the State Bank of India SBI.NS.
Mallya, who lives in Britain, has been embroiled in a long legal battle with lenders – as well as the Indian authorities – following the 2012 collapse of his defunct Kingfisher Airlines.
In 2017, a group of banks obtained a judgment in India worth over 1 billion pounds against Mallya, who had guaranteed Kingfisher Airlines' debt.
That ruling was registered in Britain later that year and led to a bankruptcy order being made against Mallya in 2021.
Mallya appealed against the bankruptcy order at a hearing in February, when his lawyers argued the banks had already recovered assets which had effectively settled the debt.
But his appeal was rejected on Tuesday, with Judge Anthony Mann saying in a written ruling that "the bottom line ... is that the bankruptcy order stands".
Mallya's lawyers said in a statement that he would continue to seek to overturn the bankruptcy order.
Mallya, who was also co-owner the Formula One motor racing team Force India, is separately fighting extradition to India to face fraud charges over Kingfisher Airlines' collapse.
His most recent appeal against his extradition was rejected in 2020, but Mann said in his ruling that the extradition order "has still not been enforced".
"Apparently Dr Mallya is still resisting extradition on other bases which have yet to be resolved," Mann added.
(Reporting by Sam Tobin; Editing by Sachin Ravikumar)
(([email protected];))
Adds Mallya response in paragraph 7
LONDON, April 9 (Reuters) - Indian tycoon Vijay Mallya on Wednesday lost an appeal against a bankruptcy order made by London's High Court over a more than 1 billion-pound ($1.28 billion) debt to lenders including the State Bank of India SBI.NS.
Mallya, who lives in Britain, has been embroiled in a long legal battle with lenders – as well as the Indian authorities – following the 2012 collapse of his defunct Kingfisher Airlines.
In 2017, a group of banks obtained a judgment in India worth over 1 billion pounds against Mallya, who had guaranteed Kingfisher Airlines' debt.
That ruling was registered in Britain later that year and led to a bankruptcy order being made against Mallya in 2021.
Mallya appealed against the bankruptcy order at a hearing in February, when his lawyers argued the banks had already recovered assets which had effectively settled the debt.
But his appeal was rejected on Tuesday, with Judge Anthony Mann saying in a written ruling that "the bottom line ... is that the bankruptcy order stands".
Mallya's lawyers said in a statement that he would continue to seek to overturn the bankruptcy order.
Mallya, who was also co-owner the Formula One motor racing team Force India, is separately fighting extradition to India to face fraud charges over Kingfisher Airlines' collapse.
His most recent appeal against his extradition was rejected in 2020, but Mann said in his ruling that the extradition order "has still not been enforced".
"Apparently Dr Mallya is still resisting extradition on other bases which have yet to be resolved," Mann added.
(Reporting by Sam Tobin; Editing by Sachin Ravikumar)
(([email protected];))
India's PNB Housing, Axis Bank, SBI climb; Goldman Sachs upgrades stocks
** PNB Housing Finance PNBH.NS climbs 5.1%, Axis Bank AXBK.NS gains 2% and SBI SBI.NS rises 2.4% amid broader market recovery
** On Monday, PNBH, SBI fell 2.7% each; AXBK dropped 4%
** Goldman Sachs raises PNBH and AXBK to "buy" from "neutral"; upgrades SBI to "neutral" from "sell"
** Expects AXBK's loan growth and profitability to accelerate in H2 FY26–FY27
** Sees PNBH benefiting from strategic shift to below-prime and affordable housing segments
** Forecasts balanced risk-reward for SBI after recent correction; revises PT to 823 rupees from 806 rupees
** AXBK and SBI lead financials .NIFTYFIN 0.7% higher; PNBH among top gainers on Nifty 500 .NIFTY500
** YTD, AXBK falls 1.6%, SBI sheds 6% vs NIFTYFIN's 2.4% rise; PNBH gains 5.2%
(Reporting by Bharath Rajeswaran in Bengaluru)
(([email protected]; +91 9769003463;))
** PNB Housing Finance PNBH.NS climbs 5.1%, Axis Bank AXBK.NS gains 2% and SBI SBI.NS rises 2.4% amid broader market recovery
** On Monday, PNBH, SBI fell 2.7% each; AXBK dropped 4%
** Goldman Sachs raises PNBH and AXBK to "buy" from "neutral"; upgrades SBI to "neutral" from "sell"
** Expects AXBK's loan growth and profitability to accelerate in H2 FY26–FY27
** Sees PNBH benefiting from strategic shift to below-prime and affordable housing segments
** Forecasts balanced risk-reward for SBI after recent correction; revises PT to 823 rupees from 806 rupees
** AXBK and SBI lead financials .NIFTYFIN 0.7% higher; PNBH among top gainers on Nifty 500 .NIFTY500
** YTD, AXBK falls 1.6%, SBI sheds 6% vs NIFTYFIN's 2.4% rise; PNBH gains 5.2%
(Reporting by Bharath Rajeswaran in Bengaluru)
(([email protected]; +91 9769003463;))
UBS upgrades India's SBI to 'neutral', hikes PT
** Brokerage UBS upgrades India's State Bank of India SBI.NS, top state-owned lender by assets, to "neutral" from "sell", hikes PT to 840 rupees from 760 rupees
** Brokerage says changing regulatory stance and central bank's measures to improve liquidity are positives for lender
** Adds, tax rebate announced in Union Budget and potential wage bill increase recommendations among "incremental positives" for SBI's customers and will in return boost loan growth
** Stock down 2% amid broader market slump; benchmark Nifty 50 .NSEI down 1.6% .BO
** YTD, SBI falls 3.3% vs Nifty's 3.2% decline and PSU banks index's .NIFTYPSU 4.5% drop
(Reporting by Kashish Tandon in Bengaluru)
** Brokerage UBS upgrades India's State Bank of India SBI.NS, top state-owned lender by assets, to "neutral" from "sell", hikes PT to 840 rupees from 760 rupees
** Brokerage says changing regulatory stance and central bank's measures to improve liquidity are positives for lender
** Adds, tax rebate announced in Union Budget and potential wage bill increase recommendations among "incremental positives" for SBI's customers and will in return boost loan growth
** Stock down 2% amid broader market slump; benchmark Nifty 50 .NSEI down 1.6% .BO
** YTD, SBI falls 3.3% vs Nifty's 3.2% decline and PSU banks index's .NIFTYPSU 4.5% drop
(Reporting by Kashish Tandon in Bengaluru)
India's financial stocks fuel Nifty 50's March comeback, set for strong FY2026
By Bharath Rajeswaran
March 28 (Reuters) - Shares of India's financial services sector companies recovered in March, leading the benchmark Nifty 50 index's comeback from a historic downturn and setting the stage for a robust fiscal year 2026.
With the Reserve Bank of India's interest rate cuts looming, credit growth surging, and foreign inflows returning, financials are once again the market's hottest bet.
Potential rate cuts and liquidity injection by the central bank are likely to improve the overall credit and deposit environment and earnings for banks in FY2026, Anand Rathi Research's analyst Kaitav Shah said.
Financials .NIFTYFIN, accounting for 37% weight in the Nifty 50 .NSEI, jumped about 9% in March after three straight monthly losses. It helped the NSE benchmark index reverse losses in the fiscal year, after about $1 trillion in investor wealth was wiped out during a downturn in the second half. The Nifty 50 had touched a record high in September.
In FY2025, financials gained nearly 20% and banks .NSEBANK rose 9%, outperforming the Nifty 50's 5% rise.
The sector has also benefited from foreign inflows returning in March after sustained selling.
Still, foreign portfolio investors (FPIs) have offloaded Indian shares worth a record $26 billion since October, marking the highest outflows in a six-month period, pushing benchmark indexes into a correction territory in November and the broader markets into a bear market last month.
BANKING AND FINANCE GAINS TO CONTINUE
For FY2026, the banking sector is expected to remain strong, with projected credit growth of 12-13% on strong services and retail demand.
"Since banking is the ideal proxy to economic growth, it should see better credit and deposit growth in FY2026," said Mayuresh Joshi of financial services firm William O'Neil and Company.
BNP Paribas analyst Santanu Chakrabarti echoed Joshi's sentiment. "Besides liquidity infusion, changes in non-bank lenders' risk weights, relaxed priority sector lending norms, and reduced foreign selling pressure keep our bullish FY2026 outlook intact."
The RBI is widely expected to cut rates by 25 basis points in April and again in August, easing funding costs and supporting credit expansion.
Despite FPIs selling financial stocks worth $6.7 billion in FY2025, roughly 41% of total outflows, the sector ended the year higher on attractive valuations.
The Nifty financial services index trades at a 12-month forward price-to-earnings (P/E) ratio of 20x, below the 10-month average of 20.6x, suggesting undervaluation which could lead to further investments.
($1 = 85.5850 Indian rupees)
Financials outperform India's Nifty 50 in fiscal year 2025 https://reut.rs/4i9Ck7D
Performance of companies in India's financial services index in FY2025 https://reut.rs/43Zit7o
What FPIs sold in fiscal year 2025 in Indian markets https://reut.rs/3FLD8lq
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Rashmi Aich)
(([email protected]; +91 9769003463;))
By Bharath Rajeswaran
March 28 (Reuters) - Shares of India's financial services sector companies recovered in March, leading the benchmark Nifty 50 index's comeback from a historic downturn and setting the stage for a robust fiscal year 2026.
With the Reserve Bank of India's interest rate cuts looming, credit growth surging, and foreign inflows returning, financials are once again the market's hottest bet.
Potential rate cuts and liquidity injection by the central bank are likely to improve the overall credit and deposit environment and earnings for banks in FY2026, Anand Rathi Research's analyst Kaitav Shah said.
Financials .NIFTYFIN, accounting for 37% weight in the Nifty 50 .NSEI, jumped about 9% in March after three straight monthly losses. It helped the NSE benchmark index reverse losses in the fiscal year, after about $1 trillion in investor wealth was wiped out during a downturn in the second half. The Nifty 50 had touched a record high in September.
In FY2025, financials gained nearly 20% and banks .NSEBANK rose 9%, outperforming the Nifty 50's 5% rise.
The sector has also benefited from foreign inflows returning in March after sustained selling.
Still, foreign portfolio investors (FPIs) have offloaded Indian shares worth a record $26 billion since October, marking the highest outflows in a six-month period, pushing benchmark indexes into a correction territory in November and the broader markets into a bear market last month.
BANKING AND FINANCE GAINS TO CONTINUE
For FY2026, the banking sector is expected to remain strong, with projected credit growth of 12-13% on strong services and retail demand.
"Since banking is the ideal proxy to economic growth, it should see better credit and deposit growth in FY2026," said Mayuresh Joshi of financial services firm William O'Neil and Company.
BNP Paribas analyst Santanu Chakrabarti echoed Joshi's sentiment. "Besides liquidity infusion, changes in non-bank lenders' risk weights, relaxed priority sector lending norms, and reduced foreign selling pressure keep our bullish FY2026 outlook intact."
The RBI is widely expected to cut rates by 25 basis points in April and again in August, easing funding costs and supporting credit expansion.
Despite FPIs selling financial stocks worth $6.7 billion in FY2025, roughly 41% of total outflows, the sector ended the year higher on attractive valuations.
The Nifty financial services index trades at a 12-month forward price-to-earnings (P/E) ratio of 20x, below the 10-month average of 20.6x, suggesting undervaluation which could lead to further investments.
($1 = 85.5850 Indian rupees)
Financials outperform India's Nifty 50 in fiscal year 2025 https://reut.rs/4i9Ck7D
Performance of companies in India's financial services index in FY2025 https://reut.rs/43Zit7o
What FPIs sold in fiscal year 2025 in Indian markets https://reut.rs/3FLD8lq
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Rashmi Aich)
(([email protected]; +91 9769003463;))
State Bank of India shelves $1.7 billion fund raising as yields elevated, sources say
Updates with SBI response in paragraph 5
By Dharamraj Dhutia and Siddhi Nayak
MUMBAI, March 17 (Reuters) - State Bank of India SBI.NS, the country's largest lender by assets, is shelving plans to raise funds this fiscal year, discouraged by elevated bond yields despite a policy rate cut and liquidity boost from the central bank, three sources aware of the matter said on Monday.
The bank had planned to raise as much as 150 billion rupees (about $1.7 billion) through sale of bonds before the end of March, but will now tap the market in the next financial year that starts in April, the sources said.
"The bank has been waiting for an opportune time to enter the market, but yields have stayed high for the last several weeks, and hence the bank is avoiding tapping the market in the near term," one of the sources said.
The sources declined to be named as they are not authorised to speak to the media.
A spokesperson from SBI said the bank does not comment on such matters.
Yields on India's 10-year corporate bonds rated 'AAA' have risen 15 basis points since early February despite India's central bank cutting the policy repo rate by 25 basis points and infusing hefty liquidity into the banking system.
"SBI assessed its asset-liability position and despite having the board approvals, decided not to go through with the bond issues for now," the second source said.
The bank will look at its funding requirement afresh in the next fiscal year, the person said.
SBI's planned bond issues included 50 billion rupees through Basel III-compliant additional Tier-I perpetual bonds and 100 billion rupees through 15-year infrastructure bonds.
The bank had raised 50 billion rupees at 7.98% in October via perpetual bonds.
Its state-run peers Bank of India BOI.NS, Punjab National Bank PNBK.NS and Bank of Maharashtra BMBK.NS raised an aggregate of 72.52 billion rupees through infrastructure bonds in February, just over half of what they had intended to raise.
($1 = 86.8380 Indian rupees)
(Reporting by Dharamraj Dhutia and Siddhi Nayak; Editing by Mrigank Dhaniwala)
(([email protected];))
Updates with SBI response in paragraph 5
By Dharamraj Dhutia and Siddhi Nayak
MUMBAI, March 17 (Reuters) - State Bank of India SBI.NS, the country's largest lender by assets, is shelving plans to raise funds this fiscal year, discouraged by elevated bond yields despite a policy rate cut and liquidity boost from the central bank, three sources aware of the matter said on Monday.
The bank had planned to raise as much as 150 billion rupees (about $1.7 billion) through sale of bonds before the end of March, but will now tap the market in the next financial year that starts in April, the sources said.
"The bank has been waiting for an opportune time to enter the market, but yields have stayed high for the last several weeks, and hence the bank is avoiding tapping the market in the near term," one of the sources said.
The sources declined to be named as they are not authorised to speak to the media.
A spokesperson from SBI said the bank does not comment on such matters.
Yields on India's 10-year corporate bonds rated 'AAA' have risen 15 basis points since early February despite India's central bank cutting the policy repo rate by 25 basis points and infusing hefty liquidity into the banking system.
"SBI assessed its asset-liability position and despite having the board approvals, decided not to go through with the bond issues for now," the second source said.
The bank will look at its funding requirement afresh in the next fiscal year, the person said.
SBI's planned bond issues included 50 billion rupees through Basel III-compliant additional Tier-I perpetual bonds and 100 billion rupees through 15-year infrastructure bonds.
The bank had raised 50 billion rupees at 7.98% in October via perpetual bonds.
Its state-run peers Bank of India BOI.NS, Punjab National Bank PNBK.NS and Bank of Maharashtra BMBK.NS raised an aggregate of 72.52 billion rupees through infrastructure bonds in February, just over half of what they had intended to raise.
($1 = 86.8380 Indian rupees)
(Reporting by Dharamraj Dhutia and Siddhi Nayak; Editing by Mrigank Dhaniwala)
(([email protected];))
Amundi Launches Joint Fund With State Bank Of India Funds Management
March 14 (Reuters) - Amundi SA AMUN.PA:
INDIA EQUITY CONTRA FUND IN PARTNERSHIP WITH STATE BANK OF INDIA FUNDS MANAGEMENT
Further company coverage: AMUN.PASBI.NS
(Gdansk Newsroom)
(([email protected]; +48 58 769 66 00;))
March 14 (Reuters) - Amundi SA AMUN.PA:
INDIA EQUITY CONTRA FUND IN PARTNERSHIP WITH STATE BANK OF INDIA FUNDS MANAGEMENT
Further company coverage: AMUN.PASBI.NS
(Gdansk Newsroom)
(([email protected]; +48 58 769 66 00;))
BREAKINGVIEWS-India's banks face a new credibility test
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, March 12 (Reuters Breakingviews) - One of India's top private banks is setting a fresh test for the sector. On Monday IndusInd Bank INBK.NS reported it had discovered an accounting discrepancy in the way it booked currency derivatives stretching back at least six years. The resulting estimated $175 million impact roughly equates to an entire quarter's earnings. It's the latest in a series of slip-ups by the firm run by Sumant Kathpalia, and the ensuing 27% drop in its shares shows its credibility is tanking. It's also likely to bring tighter scrutiny of its peers.
The bank backed by the Hinduja Group has had a turbulent few months. Microloan delinquencies are surging and governance looks wobbly. Its chief financial officer abruptly resigned in January. On Thursday, the Reserve Bank of India denied its proposal to extend Kathpalia's term as CEO by three years, giving him just one more year. All in, the now-$6 billion bank, the country's fifth-largest by loans in the private sector, has lost 60% of its market value since shares hit a high in January last year.
The stock meltdown reflects not just the cascading impact of those surprises, but also a new risk. The bank stated the financial hit as 2.35% of its net worth; that sends a worrying signal to investors that this metric, also known as book value, is not as trustworthy as they thought. Restoring such faith takes time and requires proving that the bank's systems and processes - and probably some of the top management - have been overhauled.
While the accounting fiasco currently looks specific to IndusInd, it could potentially singe others. Kathpalia told investors the discrepancy came to light in September or October, six months after the RBI tweaked valuation norms for banks' investment portfolios. Such regulatory diktats at times expose worms across the sector, as in 2017 when new disclosure standards revealed many banks to be understating bad loans.
Peers with foreign currency deposits, including market leaders State Bank of India SBI.NS and HDFC Bank HDBK.NS, will brace for more questions from the RBI and markets. They may well emerge squeaky clean, but it's a hassle they would prefer to do without.
Follow @ShritamaBose on X
CONTEXT NEWS
Shares in IndusInd Bank fell 27% to close at 656.80 rupees each on March 11, the day after it reported accounting discrepancies in foreign currency derivatives. The Indian private lender estimates an adverse impact of approximately 2.35% of its net worth as of December 2024.
The bank will, though, report a profit for the three months and financial year ending March 31, CEO Sumant Kathpalia told CNBC-TV18.
IndusInd shares sharply underperformed peers and the market https://www.reuters.com/graphics/BRV-BRV/movaylmxeva/chart.png
(Editing by Antony Currie and Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, March 12 (Reuters Breakingviews) - One of India's top private banks is setting a fresh test for the sector. On Monday IndusInd Bank INBK.NS reported it had discovered an accounting discrepancy in the way it booked currency derivatives stretching back at least six years. The resulting estimated $175 million impact roughly equates to an entire quarter's earnings. It's the latest in a series of slip-ups by the firm run by Sumant Kathpalia, and the ensuing 27% drop in its shares shows its credibility is tanking. It's also likely to bring tighter scrutiny of its peers.
The bank backed by the Hinduja Group has had a turbulent few months. Microloan delinquencies are surging and governance looks wobbly. Its chief financial officer abruptly resigned in January. On Thursday, the Reserve Bank of India denied its proposal to extend Kathpalia's term as CEO by three years, giving him just one more year. All in, the now-$6 billion bank, the country's fifth-largest by loans in the private sector, has lost 60% of its market value since shares hit a high in January last year.
The stock meltdown reflects not just the cascading impact of those surprises, but also a new risk. The bank stated the financial hit as 2.35% of its net worth; that sends a worrying signal to investors that this metric, also known as book value, is not as trustworthy as they thought. Restoring such faith takes time and requires proving that the bank's systems and processes - and probably some of the top management - have been overhauled.
While the accounting fiasco currently looks specific to IndusInd, it could potentially singe others. Kathpalia told investors the discrepancy came to light in September or October, six months after the RBI tweaked valuation norms for banks' investment portfolios. Such regulatory diktats at times expose worms across the sector, as in 2017 when new disclosure standards revealed many banks to be understating bad loans.
Peers with foreign currency deposits, including market leaders State Bank of India SBI.NS and HDFC Bank HDBK.NS, will brace for more questions from the RBI and markets. They may well emerge squeaky clean, but it's a hassle they would prefer to do without.
Follow @ShritamaBose on X
CONTEXT NEWS
Shares in IndusInd Bank fell 27% to close at 656.80 rupees each on March 11, the day after it reported accounting discrepancies in foreign currency derivatives. The Indian private lender estimates an adverse impact of approximately 2.35% of its net worth as of December 2024.
The bank will, though, report a profit for the three months and financial year ending March 31, CEO Sumant Kathpalia told CNBC-TV18.
IndusInd shares sharply underperformed peers and the market https://www.reuters.com/graphics/BRV-BRV/movaylmxeva/chart.png
(Editing by Antony Currie and Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
REFILE-Reliance's Jio Financial to buy Jio Payments Bank shares from SBI for 1.05 billion rupees
Refiles to fix typo in paragraph 1
March 4 (Reuters) - India's Jio Financial Services JIOF.NS will buy shares it did not already own in its joint venture for 1.05 billion rupees ($12.03 million) from partner State Bank of India to bolster financial operations, the Reliance group company said on Tuesday.
The financial services provider owns about 82.17% of Jio Payments Bank, begun in 2018. Its current stake-buy plans are subject to approval by the Reserve Bank of India, it said in its statement.
Jio Financial has been ramping up operations since it was spun off from the Mukesh Ambani-led conglomerate in 2023 and has recently been planning to set up a mutual fund business with U.S.-based BlackRock BLK.N.
In August, it raised its stake in Jio Payments Bank with an investment of 680 million rupees.
($1 = 87.3180 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Janane Venkatraman)
(([email protected]; +918447554364;))
Refiles to fix typo in paragraph 1
March 4 (Reuters) - India's Jio Financial Services JIOF.NS will buy shares it did not already own in its joint venture for 1.05 billion rupees ($12.03 million) from partner State Bank of India to bolster financial operations, the Reliance group company said on Tuesday.
The financial services provider owns about 82.17% of Jio Payments Bank, begun in 2018. Its current stake-buy plans are subject to approval by the Reserve Bank of India, it said in its statement.
Jio Financial has been ramping up operations since it was spun off from the Mukesh Ambani-led conglomerate in 2023 and has recently been planning to set up a mutual fund business with U.S.-based BlackRock BLK.N.
In August, it raised its stake in Jio Payments Bank with an investment of 680 million rupees.
($1 = 87.3180 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Janane Venkatraman)
(([email protected]; +918447554364;))
Indian banks' infra bond funding to turn expensive as investors demand higher returns
By Dharamraj Dhutia and Khushi Malhotra
MUMBAI, Feb 18 (Reuters) - Fundraising through infrastructure bonds is set to become more expensive for Indian lenders that have used them to raise record funds as investors demand higher returns amid increased debt supply.
Domestic lenders have raised a record 892 billion rupees ($10.26 billion) in this financial year, with some, including State Bank of India, likely to tap this route before the fiscal year ends in March.
"Over the last month, demand from long-term investors has been weak, resulting in widening of spreads in the long-term corporate bond segment," said Ketan Parikh, head of fixed income at ICICI Prudential Life Insurance.
Rising debt issuances, especially by banks and other long-term issuers, have also led to spreads widening between corporate and government bond yields, he added.
State-run Bank of Maharashtra, Punjab National Bank and Bank of India have raised a total of 72.52 billion rupees, about 55% of their 130 billion-rupee target, including greenshoe options.
The lenders have also had to pay a higher premium over the corresponding maturity government bond yield compared to their previous debt issuance.
In July, Bank of India sold 10-year infra bonds at a spread of 56 basis points above the 10-year benchmark bond yield, while Bank of Maharashtra raised funds at a spread of 85 bps over the benchmark yield. Both lenders had to pay an additional spread of 15 bps for the sale.
None of the lenders responded to Reuters' emails seeking comment.
"Large institutional investors, having met their minimum regulatory investment requirements, are now demanding higher yields amid expectations of a substantial state debt supply through March," said Venkatakrishnan Srinivasan, founder and managing partner at debt advisory firm Rockfort Fincap.
Indian states are scheduled to borrow 2.25 trillion rupees in the last five weeks of the financial year.
While yields in the secondary market have gone up by 6-8 bps since the central bank's rate cut decision earlier this month, investors are constantly bidding at higher levels for new debt placements.
Along with the lenders, other state-run companies such as REC, PFC, NABARD and IIFCL, closed their issues recently without meeting their targets, signalling overall investor fatigue.
Indian lenders unable to raise planned quantum despite paying higher yields:
Lenders | Planned quantum in bln rupees | Quantum raised | Yield spread over 10-year government bond yield | Spread in previous issue |
Punjab National Bank | 50 | 29.50 | 63 | NA |
Bank of India | 50 | 26.90 | 71 | 56 |
Bank of Maharashtra | 30 | 16.12 | 100 | 85 |
($1 = 86.9190 Indian rupees)
(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Sonia Cheema)
(([email protected];))
By Dharamraj Dhutia and Khushi Malhotra
MUMBAI, Feb 18 (Reuters) - Fundraising through infrastructure bonds is set to become more expensive for Indian lenders that have used them to raise record funds as investors demand higher returns amid increased debt supply.
Domestic lenders have raised a record 892 billion rupees ($10.26 billion) in this financial year, with some, including State Bank of India, likely to tap this route before the fiscal year ends in March.
"Over the last month, demand from long-term investors has been weak, resulting in widening of spreads in the long-term corporate bond segment," said Ketan Parikh, head of fixed income at ICICI Prudential Life Insurance.
Rising debt issuances, especially by banks and other long-term issuers, have also led to spreads widening between corporate and government bond yields, he added.
State-run Bank of Maharashtra, Punjab National Bank and Bank of India have raised a total of 72.52 billion rupees, about 55% of their 130 billion-rupee target, including greenshoe options.
The lenders have also had to pay a higher premium over the corresponding maturity government bond yield compared to their previous debt issuance.
In July, Bank of India sold 10-year infra bonds at a spread of 56 basis points above the 10-year benchmark bond yield, while Bank of Maharashtra raised funds at a spread of 85 bps over the benchmark yield. Both lenders had to pay an additional spread of 15 bps for the sale.
None of the lenders responded to Reuters' emails seeking comment.
"Large institutional investors, having met their minimum regulatory investment requirements, are now demanding higher yields amid expectations of a substantial state debt supply through March," said Venkatakrishnan Srinivasan, founder and managing partner at debt advisory firm Rockfort Fincap.
Indian states are scheduled to borrow 2.25 trillion rupees in the last five weeks of the financial year.
While yields in the secondary market have gone up by 6-8 bps since the central bank's rate cut decision earlier this month, investors are constantly bidding at higher levels for new debt placements.
Along with the lenders, other state-run companies such as REC, PFC, NABARD and IIFCL, closed their issues recently without meeting their targets, signalling overall investor fatigue.
Indian lenders unable to raise planned quantum despite paying higher yields:
Lenders | Planned quantum in bln rupees | Quantum raised | Yield spread over 10-year government bond yield | Spread in previous issue |
Punjab National Bank | 50 | 29.50 | 63 | NA |
Bank of India | 50 | 26.90 | 71 | 56 |
Bank of Maharashtra | 30 | 16.12 | 100 | 85 |
($1 = 86.9190 Indian rupees)
(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Sonia Cheema)
(([email protected];))
Australia's Findi gains on ATM agreement with State Bank of India
** Shares of Australia's Findi FND.AX rise as much as 6.4% to A$4.850, their biggest intraday gain since February 10
** Fintech co secures agreement with State Bank of India SBI.NS for further deployment of 2,293 ATMs
** Contract expected to deliver revenue of A$250 mln ($158.93 mln) to A$270 mln ($171.64 mln) and EBITDA of A$125 - $135 mln over 10-yrs
** However, co revises down its FY25 EBITDA forecast to A$30 mln to A$32 mln vs previously announced forecast of A$30 mln to A$35 mln
** FY25 revenue expected to be in range of A$68 mln-A$70 mln vs previous guidance of A$80 mln-A$90 million
** Stock up 1.3%, including current session's moves
($1 = 1.5731 Australian dollars)
(Reporting by Manasi Dasa Sundeep in Bengaluru)
((Manasi.DasaSundeep[email protected];))
** Shares of Australia's Findi FND.AX rise as much as 6.4% to A$4.850, their biggest intraday gain since February 10
** Fintech co secures agreement with State Bank of India SBI.NS for further deployment of 2,293 ATMs
** Contract expected to deliver revenue of A$250 mln ($158.93 mln) to A$270 mln ($171.64 mln) and EBITDA of A$125 - $135 mln over 10-yrs
** However, co revises down its FY25 EBITDA forecast to A$30 mln to A$32 mln vs previously announced forecast of A$30 mln to A$35 mln
** FY25 revenue expected to be in range of A$68 mln-A$70 mln vs previous guidance of A$80 mln-A$90 million
** Stock up 1.3%, including current session's moves
($1 = 1.5731 Australian dollars)
(Reporting by Manasi Dasa Sundeep in Bengaluru)
((Manasi.DasaSundeep[email protected];))
State Bank of India sees sector's personal loan woes easing on tighter credit rules
By Siddhi Nayak and Ira Dugal
MUMBAI, Feb 12 (Reuters) - State Bank of India (SBI) SBI.NS, the country's top lender by assets, expects the industry's concerns over retail borrowers defaulting on small-ticket loans to ease on the back of tighter credit reporting rules, its chairman said.
In January, India's central bank mandated that credit bureaus update borrowers' credit information on a fortnightly basis against once a month earlier.
"Lenders now know that a certain customer has reached his leverage, and beyond that, we should not give him additional credit," Challa Sreenivasulu Setty, the chairman of SBI, said in an interview late on Tuesday.
SBI has a total loan book of 40.67 trillion rupees (about $469 billion), with more than a third of it in personal loans.
As young Indians become more comfortable with taking on loans, household debt in the South Asian country has risen to nearly 43% of GDP, according to data from the regulator.
Private banks and non-bank lenders have grown their personal loan books aggressively but reported an increase in bad loans in the six months through December.
A weaker economy, which is expected to expand at its slowest pace in four years, and excessive lending to some customer segments have led to an increase in stress.
SBI, however, does not see a build-up of stress, its chairman Setty said.
"I don't see any headwinds in terms of asset quality. We have an excellent book on unsecured personal loans and corporate credit is holding up very well," he said.
SBI reported stable asset quality for the October-to-December quarter with bad loans at 2.07% of its total assets.
Over the past year, regulators have sought to examine whether personal loans are being used to invest in the stock market, which could lead to an increase in defaults amid market falls.
SBI's Setty sees no sign of such practices in the bank's loan book.
TARGETING THE AFFLUENT
While low wage growth and high inflation have hurt India's "middle-class", the number of the affluent have also grown, prompting SBI to sharpen its focus on them.
Goldman Sachs in a report last year said the number of affluent consumers in India, who earn more than $10,000 a year, could rise to 100 million by 2027 from 60 million in 2023.
"We are looking at customers below one level of what was considered premium to try and add value," Setty said.
The bank has hired nearly 2,000 relationship managers this fiscal year to target the mass affluent customers, which it defines as those with a banking relationship value of 3 million rupees and higher, Setty said.
SBI is offering premium banking services to attract depositors with privileges associated with credit cards, even as there are no concerns over garnering deposits, Setty said.
"We have one of the largest wealth teams now, apart from the premier banking relationship teams," Setty said.
($1 = 86.7180 Indian rupees)
(Reporting by Siddhi Nayak and Ira Dugal; Editing by Mrigank Dhaniwala)
(([email protected]; +91-9833024892;))
By Siddhi Nayak and Ira Dugal
MUMBAI, Feb 12 (Reuters) - State Bank of India (SBI) SBI.NS, the country's top lender by assets, expects the industry's concerns over retail borrowers defaulting on small-ticket loans to ease on the back of tighter credit reporting rules, its chairman said.
In January, India's central bank mandated that credit bureaus update borrowers' credit information on a fortnightly basis against once a month earlier.
"Lenders now know that a certain customer has reached his leverage, and beyond that, we should not give him additional credit," Challa Sreenivasulu Setty, the chairman of SBI, said in an interview late on Tuesday.
SBI has a total loan book of 40.67 trillion rupees (about $469 billion), with more than a third of it in personal loans.
As young Indians become more comfortable with taking on loans, household debt in the South Asian country has risen to nearly 43% of GDP, according to data from the regulator.
Private banks and non-bank lenders have grown their personal loan books aggressively but reported an increase in bad loans in the six months through December.
A weaker economy, which is expected to expand at its slowest pace in four years, and excessive lending to some customer segments have led to an increase in stress.
SBI, however, does not see a build-up of stress, its chairman Setty said.
"I don't see any headwinds in terms of asset quality. We have an excellent book on unsecured personal loans and corporate credit is holding up very well," he said.
SBI reported stable asset quality for the October-to-December quarter with bad loans at 2.07% of its total assets.
Over the past year, regulators have sought to examine whether personal loans are being used to invest in the stock market, which could lead to an increase in defaults amid market falls.
SBI's Setty sees no sign of such practices in the bank's loan book.
TARGETING THE AFFLUENT
While low wage growth and high inflation have hurt India's "middle-class", the number of the affluent have also grown, prompting SBI to sharpen its focus on them.
Goldman Sachs in a report last year said the number of affluent consumers in India, who earn more than $10,000 a year, could rise to 100 million by 2027 from 60 million in 2023.
"We are looking at customers below one level of what was considered premium to try and add value," Setty said.
The bank has hired nearly 2,000 relationship managers this fiscal year to target the mass affluent customers, which it defines as those with a banking relationship value of 3 million rupees and higher, Setty said.
SBI is offering premium banking services to attract depositors with privileges associated with credit cards, even as there are no concerns over garnering deposits, Setty said.
"We have one of the largest wealth teams now, apart from the premier banking relationship teams," Setty said.
($1 = 86.7180 Indian rupees)
(Reporting by Siddhi Nayak and Ira Dugal; Editing by Mrigank Dhaniwala)
(([email protected]; +91-9833024892;))
State Bank Of India Q3 Domestic Credit Growth 14.06% Y/Y
Feb 6 (Reuters) - State Bank of India SBI.NS:
Q3 DOMESTIC CREDIT GROWTH UP 14.06% Y/Y
Q3 DOMESTIC DEPOSIT GROWTH 9.76% Y/Y
Q3 SLIPPAGES 38.23 BILLION RUPEES
Source text: [ID:]
Further company coverage: SBI.NS
(([email protected];))
Feb 6 (Reuters) - State Bank of India SBI.NS:
Q3 DOMESTIC CREDIT GROWTH UP 14.06% Y/Y
Q3 DOMESTIC DEPOSIT GROWTH 9.76% Y/Y
Q3 SLIPPAGES 38.23 BILLION RUPEES
Source text: [ID:]
Further company coverage: SBI.NS
(([email protected];))
State Bank of India aims to raise 50 bln rupees via perpetual bonds, sources say
By Dharamraj Dhutia and Siddhi Nayak
MUMBAI, Feb 5 (Reuters) - The State Bank of India SBI.NS is looking to raise around 50 billion rupees ($573.38 million) via Basel III-compliant additional Tier-I perpetual bonds before the end of February, three sources aware of the matter said on Wednesday.
The country's largest lender could have a call option at the end of either five years or 10 years on the issue, the sources added.
"The lender has already started talking about the issue and based on investor feedback, they will take a final decision on the call option as well as the timing to launch this issue. Insurance companies are expected to be among the bidders," one of the sources said.
SBI did not immediately reply to a Reuters email seeking comment. The sources declined to be named as they are not authorised to speak to the media.
This would be the first such issuance from any lender in over three months.
Incidentally, SBI was the last issuer that had tapped this route, when it raised 50 billion rupees at a coupon of 7.98% in October. This issue had a call option at the end of 10 years.
Bankers also expect some mutual funds to participate in the latest issue since, earlier this year, the market regulator allowed mutual funds to value perpetual bonds based on their call option, a move that has improved appetite for such debt.
($1 = 87.2025 Indian rupees)
(Reporting by Dharamraj Dhutia; Editing by Savio D'Souza)
(([email protected];))
By Dharamraj Dhutia and Siddhi Nayak
MUMBAI, Feb 5 (Reuters) - The State Bank of India SBI.NS is looking to raise around 50 billion rupees ($573.38 million) via Basel III-compliant additional Tier-I perpetual bonds before the end of February, three sources aware of the matter said on Wednesday.
The country's largest lender could have a call option at the end of either five years or 10 years on the issue, the sources added.
"The lender has already started talking about the issue and based on investor feedback, they will take a final decision on the call option as well as the timing to launch this issue. Insurance companies are expected to be among the bidders," one of the sources said.
SBI did not immediately reply to a Reuters email seeking comment. The sources declined to be named as they are not authorised to speak to the media.
This would be the first such issuance from any lender in over three months.
Incidentally, SBI was the last issuer that had tapped this route, when it raised 50 billion rupees at a coupon of 7.98% in October. This issue had a call option at the end of 10 years.
Bankers also expect some mutual funds to participate in the latest issue since, earlier this year, the market regulator allowed mutual funds to value perpetual bonds based on their call option, a move that has improved appetite for such debt.
($1 = 87.2025 Indian rupees)
(Reporting by Dharamraj Dhutia; Editing by Savio D'Souza)
(([email protected];))
UBS upgrades India's SBI Card to 'neutral' as delinquencies stabilise
** UBS upgrades SBI Cards and Payments Services SBIC.NS to 'neutral' from 'sell'
** Expects drop in credit costs in FY26, noting high costs led to weak performance in past few quarters
** Sees early signs of stabilisation in delinquencies and improvement in incremental underwriting
** But says overdue payments have to drop further for a more bullish rating
** 23 analysts avg rating on SBIC is the equivalent of 'hold' -LSEG data
** SBIC down 1.09% at 744.5 rupees on the day
** UBS raises PT to 800 rupees from 600 rupees; analysts' median PT is 730 rupees
** SBIC shares up ~12% in Jan after near 13% drop in 2024
(Reporting by Ananta Agarwal in Bengaluru)
** UBS upgrades SBI Cards and Payments Services SBIC.NS to 'neutral' from 'sell'
** Expects drop in credit costs in FY26, noting high costs led to weak performance in past few quarters
** Sees early signs of stabilisation in delinquencies and improvement in incremental underwriting
** But says overdue payments have to drop further for a more bullish rating
** 23 analysts avg rating on SBIC is the equivalent of 'hold' -LSEG data
** SBIC down 1.09% at 744.5 rupees on the day
** UBS raises PT to 800 rupees from 600 rupees; analysts' median PT is 730 rupees
** SBIC shares up ~12% in Jan after near 13% drop in 2024
(Reporting by Ananta Agarwal in Bengaluru)
India's HDFC Life, SBI Life gain after Centrum's 'buy' calls
** Shares of HDFC Life Insurance HDFL.NS and SBI Life Insurance SBIL.NS up 2.3% and 3.2%, respectively
** Both stocks among top gainers on blue-chip Nifty 50 .NSEI index, after brokerage Centrum lists them as its top picks in the life insurance sector
** Brokerage initiates SBIL with "buy" rating and PT of 1,930 rupees; says it likes company's annualised premium equivalent (APE) market share dominance and competitive cost dominance
** Centrum also initiates HDFL with "buy" and PT of 780 rupees; highlights company's favourable product mix and its continued presence as one of India's two largest life insurers
** But any rule changes that cap insurers' parent banks' share to insurers' total bancassurance business is "detrimental" to both stocks - brokerage
** Average rating on both stocks is "buy" - LSEG data
** SBIL fell about 6% in 2024, while HDFL fell ~5%, underperforming Nifty 50 during the period
(Reporting by Nandan Mandayam in Bengaluru)
(([email protected]; Mobile: +91 9591011727;))
** Shares of HDFC Life Insurance HDFL.NS and SBI Life Insurance SBIL.NS up 2.3% and 3.2%, respectively
** Both stocks among top gainers on blue-chip Nifty 50 .NSEI index, after brokerage Centrum lists them as its top picks in the life insurance sector
** Brokerage initiates SBIL with "buy" rating and PT of 1,930 rupees; says it likes company's annualised premium equivalent (APE) market share dominance and competitive cost dominance
** Centrum also initiates HDFL with "buy" and PT of 780 rupees; highlights company's favourable product mix and its continued presence as one of India's two largest life insurers
** But any rule changes that cap insurers' parent banks' share to insurers' total bancassurance business is "detrimental" to both stocks - brokerage
** Average rating on both stocks is "buy" - LSEG data
** SBIL fell about 6% in 2024, while HDFL fell ~5%, underperforming Nifty 50 during the period
(Reporting by Nandan Mandayam in Bengaluru)
(([email protected]; Mobile: +91 9591011727;))
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What does SBI do?
State Bank of India (SBI) is a prominent public sector bank in India, providing a diverse range of financial products to individuals, businesses, and institutions with a focus on service, transparency, ethics, and sustainability.
Who are the competitors of SBI?
SBI major competitors are HDFC Bank, ICICI Bank, Bank Of Baroda, PNB, Union Bank Of India, IDBI, Canara Bank. Market Cap of SBI is ₹7,00,315 Crs. While the median market cap of its peers are ₹1,18,320 Crs.
Is SBI financially stable compared to its competitors?
SBI seems to be financially stable compared to its competitors. The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Does SBI pay decent dividends?
The company seems to be paying a very low dividend. Investors need to see where the company is allocating its profits. SBI latest dividend payout ratio is 18.3% and 3yr average dividend payout ratio is 18.21%
How has SBI allocated its funds?
Company has been allocating majority of new resources to productive uses like advances.
How strong is SBI balance sheet?
Latest balance sheet of SBI is weak, and historically as well.
Is the profitablity of SBI improving?
Yes, profit is increasing. The profit of SBI is ₹77,561 Crs for Mar 2025, ₹67,085 Crs for Mar 2024 and ₹55,648 Crs for Mar 2023
Is SBI stock expensive?
SBI is not expensive. Latest PE of SBI is 9.03 while 3 year average PE is 11.8. Also latest Price to Book of SBI is 1.44 while 3yr average is 1.46.
Has the share price of SBI grown faster than its competition?
SBI has given better returns compared to its competitors. SBI has grown at ~11.43% over the last 10yrs while peers have grown at a median rate of 4.7%
Is the promoter bullish about SBI?
Promoters stake in the company seems stable, and we need to go through filings and allocation of resources to gauge promoter bullishness. Latest quarter promoter holding in SBI is 57.43% and last quarter promoter holding is 57.43%.
Are mutual funds buying/selling SBI?
The mutual fund holding of SBI is decreasing. The current mutual fund holding in SBI is 12.16% while previous quarter holding is 12.34%.