SBIN

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];))

Corrects paragraph 6 of May 15 story to clarify SMBC will acquire the stake from SBI, not State Bank

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;))

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];))

May 9 (Reuters) - Sumitomo Mitsui Financial Group Inc 8316.T:

• JAPAN'S SUMITOMO MITSUI FINANCIAL GROUP TO INVEST IN INDIA'S YES BANK, NIKKEI SAYS

• SMBC TO ACQUIRE ABOUT 20% STAKE IN YES BANK FOR MORE THAN 200 BILLION YEN, NIKKEI SAYS

• SMBC TO BUY STAKE IN YES BANK FROM STATE BANK OF INDIA, OTHER SHAREHOLDERS, NIKKEI SAYS

Source text: https://www.nikkei.com/article/DGXZQOUB171KN0X10C25A4000000/

Further company coverage: 8316.T

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];))

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];))

• State Bank of India expects RBI to cut repo rate by an aggregate of 75 basis points over June and August

• This would be followed up by another 50 bps of cuts in second half of this financial year, it adds

• "We feel, jumbo cuts of 50 bps could be more effective than secular 25 bps tranches spread over the horizon," Soumya Kanti Ghosh, group chief economic adviser says in a note

• RBI has cut repo rate by 25 bps each in February and April, with broader market consensus eyeing another 50-75 bps of cuts

• Nation's largest lender expects inflation to breach 3% consistently for next 3 months barring any food price shock or heat wave

• It expects currency to stabilise in the 85-87 per dollar range in 2025; 10-year bond yield to move closer towards 6.00% mark

(Reporting by Dharamraj Dhutia)

(([email protected]))

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;))

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;))

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];))

** 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))

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];))

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 did not immediately respond to a request for comment.

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)

(([email protected];))

** 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;))

** 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)

(([email protected]))

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)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Rashmi Aich)

(([email protected]; +91 9769003463;))

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];))

March 14 (Reuters) - Amundi SA AMUN.PA:

• INDIA EQUITY CONTRA FUND IN PARTNERSHIP WITH STATE BANK OF INDIA FUNDS MANAGEMENT

Source text

Further company coverage: AMUN.PASBI.NS

(Gdansk Newsroom)

(([email protected]; +48 58 769 66 00;))

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.

(Editing by Antony Currie and Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

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;))

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:

($1 = 86.9190 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Sonia Cheema)

(([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];))

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)

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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

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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)

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** 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)

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** 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)

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** Shares of SBI Life Insurance Co SBIL.NS fall ~3% in 2024, set to snap three-year winning streak

** Insurer down ~1% at 1,391.80 rupees during the session, on track for third straight session of losses, if trend holds

** YTD, Nifty financial services index .NIFTYFIN and Nifty 50 index .NSEI up ~9% each

** Avg rating of 31 analysts covering SBIL at "buy" while peers ICICI Prudential Life Insurance Co ICIR.NS and HDFC Life Insurance Co HDFL.NS also rated "buy" - data compiled by LSEG

** Median PT for SBIL at 1,940 rupees - LSEG data

** YTD, ICIR up ~21% while HDFL down ~5%

(Reporting by Dimpal Gulwani in Bengaluru)

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Dec 18 (Reuters) - State Bank of India SBI.NS:

• APPOINTMENT OF RAMA MOHAN RAO AMARA AS MANAGING DIRECTOR, SBI

• CENTRAL GOV APPOINTS RAMA MOHAN RAO AMARA AS MD IN SBI

Source text: ID:nNSEb2NfKK

Further company coverage: SBI.NS

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Dec 13 (Reuters) - State Bank of India SBI.NS:

• STATE BANK OF INDIA - KEEPS ONE-YEAR MCLR UNCHANGED AT 9%

Source text: [ID:]

Further company coverage: SBI.NS

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