LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Profit hit by depreciation of the value of government bonds: Rajnish Kumar, Chairman, SBI

Rajnish Kumar, Chairman, SBI, feels that the profit in the current quarter of July-September would be contingent on the NCLT approving a resolution of one large account. In an exclusive interview with Zee Business, Kumar said the bank is planning to sell 4 per cent stake in its general insurance subsidiary, SBI General Insurance this financial year.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Profit hit by depreciation of the value of government bonds: Rajnish Kumar, Chairman, SBI
State Bank of India (SBI) on Friday reported a surprise loss for the third straight quarter. The bank incurred a net loss of Rs 4,876 crore during the quarter ended in June 2018. Image source: Zee Business
Written By: ZeeBiz WebTeam
Updated: Mon, Aug 13, 2018
08:14 pm
New Delhi, ZeeBiz WebDesk
RELATED NEWS
SBI Share Price: Analyst expects buying at Rs 268 with stop-loss of Rs 253 for target of Rs 295/310 SBI Share Price: Analyst expects buying at Rs 268 with stop-loss of Rs 253 for target of Rs 295/310
SBI Share Price: ICICI Securities highlights key pointers - What stock market investors must know SBI Share Price: ICICI Securities highlights key pointers - What stock market investors must know
SBI share price today: High Noon | Bullish move expected, buy at Rs 239  SBI share price today: High Noon | Bullish move expected, buy at Rs 239
How SBI Card performed on its market debut How SBI Card performed on its market debut
SBI board okays share purchase in Yes Bank for Rs 7,250 cr SBI board okays share purchase in Yes Bank for Rs 7,250 cr

Country’s largest lender, State Bank of India (SBI) on Friday reported a surprise loss for the third straight quarter. The bank incurred a net loss of Rs 4,876 crore during the quarter ended in June 2018. However, Rajnish Kumar, Chairman, SBI, feels that the profit in the current quarter of July-September would be contingent on the NCLT approving a resolution of one large account. In an exclusive interview with Zee Business, Kumar said the bank is planning to sell 4 per cent stake in its general insurance subsidiary, SBI General Insurance this financial year. Here are the edited excerpts:

Q: The bank has posted negative quarterly results for the third consecutive time. What can be the reason for it? Secondly, the bank's provisioning is to elevate and what can be the reason for such an elevation?
A: The bank's profit being hit by a large depreciation of the value of government bonds in June quarter was one of the many reasons behind it. On June 30, 2018, the bank went for Rs 5,900 crore mark-to-market provisioning of the same. However, RBI gave us a dispensation of four quarters for the same, but we, the board and the management, wanted to end it in this quarter to make sure that the hangover of Rs 1,500 crore doesn't remain in existence for remaining quarters. 

Q: We have seen an improvement in the net interest margin of the bank. Can you let us know about the areas that are leading to improvement in the margins? We also want to know about the resolution process of NCLT cases and what are your expectations from them?

A: Bank's control of the cost of fund is one reason for the improvement in its net interest market and we are also trying to increase yield on advances. This account has resulted in a 12 per cent increase. Similarly, a 24 per cent increase can be attributed to the two accounts of National Company Law Tribunal (NCLT), whose interest income right backs were given to the bank. Currently, the bank's net interest margin at domestic level stands at 2.95 per cent, but the removal of the impact of these two accounts reduces it to 2.8 per cent in June.  

Q: Let's talk about NPA's. Can you let us know about such sectors where the pain is visible? Is the recovery in infrastructure sector visible?
A: Recoveries are visible. The main thing is related to the provisioning of the losses due to loans and State Bank of India is at a place, where provisioning is about complete. When it comes to assets of the power sector then we know that any attempt to sell them will help us in crystallising the losses. We are trying to go for resolution of 6-7 power assets and their resolution will definitely have an impact on our September quarter results. The best part of there resolution is that it will help us to give an end to the power sector stress on the bank. Resolving such assets will help us in strengthening our position in terms of NPAs and provisions. 

Q: Will SBI take a position in the rights issue of IL&FS's? If yes, then what will be the reason for such a decision? Because IL&FS is a weak company and bailing out it raises questions. 
A: No, we have not made any decision on it and we have not received any written request for it. The bank will take decision on it after receiving any such request. The decision will be made after considering the investment policy of the bank and understanding the prevalent circumstances. 

Watch this Zee Business video

Q: Now let's talk about value unlocking. Let us know about the companies where value unlocking has been planned? Also, let us know about its possible timeline?
A: Next year, we will be unlocking the values of three companies namely, SBI General, SBI Mutual Fund and SBI cards. In fact, we have started with the process for SBI General. We look to sell a 4 per cent stake in the general insurance arm and this trial will help us to determine its value and act as a precursor for the IPO. Process for the remaining two companies will be started soon. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
State Bank of India (SBI)SBI chairman Rajnish Kumar
RELATED NEWS
SBI Share Price: Analyst expects buying at Rs 268 with stop-loss of Rs 253 for target of Rs 295/310 SBI Share Price: Analyst expects buying at Rs 268 with stop-loss of Rs 253 for target of Rs 295/310
SBI Share Price: ICICI Securities highlights key pointers - What stock market investors must know SBI Share Price: ICICI Securities highlights key pointers - What stock market investors must know
SBI share price today: High Noon | Bullish move expected, buy at Rs 239  SBI share price today: High Noon | Bullish move expected, buy at Rs 239
How SBI Card performed on its market debut How SBI Card performed on its market debut
SBI board okays share purchase in Yes Bank for Rs 7,250 cr SBI board okays share purchase in Yes Bank for Rs 7,250 cr

LATEST NEWS

On Women's Day, don't fall for this WhatsApp scam | Check NOW

JEE Main Result 2021 toppers list: 100 Percentile bagged by 6 candidates says NTA | Download scorecard from jeemain.nta.nic.in, nta.ac.in - Meet Saket Jha, Pravar Kataria, Ranjim Prabal Das, Guramrit Singh, Siddhant Mukherjee, Ananth Krishna Kadambi

PUBG Mobile 1.3 global update: APK download link, check expected release date and more!

DDA draw LIVE results 2021 - Date, time, streaming, webcast link to check online allotment of flats

Easy Trip Planners IPO: Motilal Oswal recommends Subscribe to the IPO

Toyota VC invests in AI startups, firms that refine everyday processes

PPF vs NPS Calculator: Here is what will turn you into a crorepati and much more - Money Tip EXPLAINED

Announced LIVE: JEE Main Result DECLARED - Here is how to check

7th Pay Commission: After family pension, Modi government BIG relief on DA for central government employees likely soon, pensioners to benefit too

NEET 2021 exam: Students don't miss to check the latest update on exam dates, eligibility criteria, registration process and all you need to know before appearing in the exam!

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved