Will an ‘asymptomatic’ SBI throw up negative surprises a few quarters later? One will have to wait and watch to see how the moratorium loan book is performing post August 31.However, Chairman Rajnish Kumar remains confident on the bank’s prospects
He added that there was space for new HFCs to enter the market but on two conditions. "They should be 100 percent housing finance companies and they should not take deposits," he said.
Finance Minister Nirmala Sitharaman said that projects that have been classified as non-performing assets (NPAs) will be covered under the scheme.
He also said that deposit growth has slowed down to 8% YoY.
Kumar was responding to a query on why the bank had not cut the marginal cost of funds based lending rates
Elaborating further on the issue of NPAs, Kumar said last year the system was struggling with higher and elevated NPAs and largely it was the steel and power sectors that got impacted the most.
This comes against the backdrop of the Supreme Court judgement September 26 declaring Aadhaar scheme as constitutionally valid, even as it struck down some of its provisions.
"If you look at the bond yields, they have gone up in the recent past. So, I think the headroom available for cutting down the interest rates, both deposit and lending (seems limited). Deposit rate unless you cut you cannot cut lending rate ... for time being we are in for much more stable interest rate," he said.
SBI, which accounts for more than a fifth of India's banking assets, has seen bad loans rise after it absorbed five subsidiary banks earlier this year.
It will be my responsibility to carry forward the work done by Arundhati Bhattacharya, said newly appointed State Bank of India (SBI) Chairman, Rajnish Kumar in an interview to CNBC-TV18.
The government takes a crucial step in its battle against bad loans. The cabinet clears amendment to banking regulation act. Details will be revealed after the President's nod. In an interview to CNBC-TV18, Rajnish Kumar, MD of State Bank of India spoke about his reading and expectations of banking sector in terms of non-performing asset (NPA) resolution measures.
"I do not think there will be any change in interest rates from Reserve Bank of India (RBI)", Rajnish Kumar, MD, State Bank of India (SBI) told CNBC-TV18.
Non-performing assets (NPAs) of banks have shot up to 9.5 percent in the third quarter of this fiscal from 9.1 percent in the previous and 8.5 percent in the March quarter.
Arun Tiwari, CMD, Union Bank of India said confidence of getting cash whenever needed will return back for people in a month or so. He said RBI is now in a better position to supply currency.
Tenders of old banknotes in excess of Rs 5000 into a bank account will be received for credit only once during the remaining period till December 30, 2016.
Fully KYC-compliant account holders may be allowed to withdraw â‚¹10,000 from their accounts in a month. The branch managers may allow further withdrawals beyond â‚¹10,000 only after ascertaining the genuineness of such withdrawals.
The government's decision to scrap 500 and 1000 rupee notes has been received well throughout the country, barring some political parties of course. However, the move has also taken the country by surprise.
Managing Director of the lender, Rajnish Kumar says if the account is KYC compliant, then there is no limitation to depositing money your account. He adds that if an individual is depositing a sum in crore but has an income statement in lakh, then the Income Tax department can come into the picture.
In an interview to CNBC-TV18 Sivarama Krishnan, Cyber Security Leader at PwC India, Rajiv Anand, Group Executive at Axis Bank and Rajnish Kumar, MD at State Bank of India to CNBC-TV18, decode the debit card data breach, its possible causes and impact on 32 lakh debit cards that were compromised.
A security breach at some ATM branches has led to breach of security information of various card holders. The country‘s largest public lender State Bank of India (SBI) has cancelled 6,25,000 cards as a precautionary measure.
Speaking to CNBC-TV18 Rajnish Kumar, MD, SBI said that through this arrangement it is expecting a last mile connectivity. â€œTheir (Rel Jio) distribution network is huge,â€ he said, adding that there are certain limitations of a payment bank.
There were media reports that the government was looking at a proposal to extend the first woman chairperson of the country's largest lender by an year after her term ends in September.
About 15-20 National Company Law Tribunals will be set up to hear insolvency cases. The first case can come within a year itself, says MR Umarji, Member, Bankruptcy Law Committee.