Financial Daily from THE HINDU group of publications
Saturday, May 20, 2006
Financial Daily from THE HINDU group of publications Saturday, May 20, 2006 |
|
|
|
|
|
|
|
Money & Banking
-
Public Sector Banks SBI to shore up resource base Our Bureau
MR A.K. PURWAR, Chairman, State Bank of India, and Mr Om Prakash Bhatt, MD, at a press conference in Kolkata on Friday. — A. Roy Chowdhury
Kolkata , May 19 State Bank of India, which sees an additional capital requirement of Rs 6,000-7,000 crore in the current fiscal, will look at several ways of raising resources in the coming days. While an upper Tier-II debt issue has already been worked out, the bank will consider other innovative methods of shoring up its resource base. SBI has foreseen a good credit offtake scenario in 2006-07, considering the growth prospects of the economy. Among the segments that are expected to do well — and are seen as capable of absorbing higher credit — are power, roads and airports. Besides these key areas of infrastructure, sectors such as pharma and textiles are also seen as growing in significance. The bank, as Mr A.K. Purwar, Chairman, explained, does not envision a resource crunch of any sort this year. Deposits, he added, will not present its exclusive source of funds. Instead, SBI is looking forward to securitisation of assets and availing itself of refinancing in its efforts to shore up its position. While questions have been raised with regard to the overall cost of funds, SBI hopes to close the current fiscal with better numbers. On another front, SBI is trying to bring service charges in line with the market, especially in areas where its charges are way lower than that of its competition. The full impact of the hike in charges will be felt this year, it is pointed out.
Interest rate
The interest rate scenario, Mr Purwar maintained, will be determined by the liquidity situation that prevails in the market. Globally, however, rates are on the rise and oil prices, which have also moved up, will continue to have their effect on this front.The bank, he said while addressing another issue, will look out for acquisition targets this year too. This will be in line with its existing acquisition strategy, which has in recent months led it to banks in Mauritius and Indonesia. Once again, it will scout for targets in Africa and Asia.
Limited exposure to stocks
The bank has limited exposure to the stock market, a position that has probably saved SBI from facing the heat generated by turbulent prices witnessed over the past two days. "We are not impacted by the volatility", Mr Purwar maintained while referring to the sharp decline in the indices.The bank has on the other hand continued to de-risk its fixed-income portfolio, which remains its core focus. It is aware that the recently passed RBI Amendment Bill will help the central bank to freely set CRR and SLR. "Re-setting will depend on RBI's prevailing assessment of the situation," the SBI chief said.
,
More Stories on : Public Sector Banks | State Bank of India
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|