SBI Share Price Live Updates: SBI's Weekly Performance Shows Positive Returns
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The Hindu
8 hours ago
- The Hindu
To mark SBI's 60 years in Telangana, CGM urges staff to eye 1% more market share in all districts
State Bank of India Hyderabad Circle Chief General Manager S. Radhakrishnan on Friday urged employees to work towards increasing the market share of the bank by 1% in every district to mark 60 years of SBI in Telangana. He called upon all concerned, from CGMs, GMs, BGMs, AGMs to employee associations to unite in this mission while also reaffirming commitment to SBI's inclusive banking ethos, the bank said in a release on his address at the Independence Day celebrations organised at the Local Head Office here. Mr. Radhakrishnan also stressed the importance of recognition, dignity and kindness in daily interactions, from returning a salute to acknowledging subordinates. He said everyone should work to transform SBI into not just the largest, but the best bank in Telangana through compassion, leadership and collective resolve. Highlighting the pivotal role played by civil organisations in nation-building, he said the SBI's is the most impactful among them. From industry and services to education and healthcare, the bank has been a cornerstone of India's development. The SBI is the largest commercial bank, the most profitable company and one of the most trusted brands globally.
Time of India
9 hours ago
- Time of India
A bellwether signal? SBI hikes home loan rates by 25 basis points
Mumbai: In a move that could signal a shift toward higher interest rates in the home loan market, India's largest mortgage lender, State Bank of India (SBI), has increased home loan rates by 25 basis points for new borrowers. Independence Day 2025 Modi signals new push for tech independence with local chips Before Trump, British used tariffs to kill Indian textile Bank of Azad Hind: When Netaji Subhas Chandra Bose gave India its own currency The hike primarily affects applicants with lower credit scores, as the bank has raised the upper band of its loan rates. Union Bank of India has also increased its rates, and other public sector lenders may follow suit. During the last fortnight of July, SBI's mortgage rates ranged from 7.5% to 8.45%. After the revision, new borrowers will pay between 7.5% and 8.70%. Union Bank of India has raised its rate to 7.45%, up from 7.35% in late July. Both banks did not respond to emailed queries seeking an explanation for the rate hike. In comparison, private lenders such as HDFC Bank , ICICI Bank , and Axis Bank currently offer home loans with starting rates of 7.90%, 8%, and 8.35%, respectively. "Yes, SBI has tweaked the rates based on CIBIL scores and the External Benchmark Lending Rate (EBLR). This is a low-yielding product for us, so we've decided to increase margins on new loans for borrowers with low credit scores. This change applies only to new customers and will not impact the ₹8 lakh crore of outstanding loans," said a person familiar with the matter. Home loans form the largest portion of SBI's retail lending portfolio. Private banks have been critical of the aggressive pricing strategy adopted by public sector peers.. HDFC Bank reported a year-on-year growth of nearly 7% in its home loan portfolio for the first quarter of the current financial year, though growth remained flat sequentially. Bank executives attributed the slowdown to "irrational pricing" by competitors, arguing that pursuing growth at the expense of profitability was unviable. "We continue to see very low rates. In many top cities, mortgage rates are being advertised at 7.2% to 7.3%, levels not seen in recent years," said Srinivasan Vaidyanathan, Chief Financial Officer at HDFC Bank, during the bank's post-earnings call. "We want the right kind of customer for a broad-based relationship, so we've been selective." Pricing pressure has intensified following a 100 basis point cut in the repo rate by the Reserve Bank of India, bringing it down to 5.5%. ICICI Bank posted a 10.3% increase in its mortgage portfolio for the quarter, with home loans accounting for two-thirds of the growth. However, this was slower than the 14.2% expansion recorded a year earlier, reflecting softer demand and heightened competition. Mixed Data Axis Bank, meanwhile, reported a year-on-year decline in home loan volumes, a segment it has struggled to grow for several quarters. For FY25, ICICI Bank reported 11% growth in its home loan book, ahead of private sector peers HDFC Bank (8%) and Axis Bank (6%). Public sector banks outperformed, with SBI growing its home loan portfolio by 14%, and Bank of Baroda and Punjab National Bank posting growth of 18% each. The rate hikes by SBI and Union Bank of India may indicate a strategic shift away from low-margin retail loans, with a renewed focus on more profitable lending segments. According to RBI data, home loans grew by 9.6% in the year ending June 2025-a sharp slowdown from the 36.3% growth recorded the previous year. These increases come at a time when the repo rate is falling and banks are facing pressure on net interest margins. Many public sector banks had priced home loans aggressively, leveraging their wide customer base and reach. Experts had warned that such low-yielding products, while expanding loan books, were unsustainable as they did not improve profitability. "The industry is feeling the pinch amid a downward interest rate cycle and mounting pressure on net interest margins. Raising interest rates on select products can help banks generate additional income and improve returns," said Asutosh Mishra, lead BFSI analyst at Ashika Stock Broking. Over the past four years, government-owned banks have steadily gained market share. Data from credit bureau CRIF Highmark shows that the share of new home loans by value for public sector banks rose to 43% in FY25 from 34% in FY22. Over the same period, the share for private banks fell to 29.8% from 42.6%.
Indian Express
10 hours ago
- Indian Express
SBI, Bank of Baroda and Indian Overseas Bank reduce MCLR
Public sector lenders, including the State Bank of India (SBI), Bank of Baroda (BoB) and Indian Overseas Bank (IOB) have reduced their marginal cost of funds-based lending rates (MCLR) by up to 35 basis points (bps) across various tenors. The reduction follows a cumulative reduction of 100 bps in the repo rate to 5.5 per cent by the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) between February and June. In the August monetary policy meeting, the six-member MPC left the repo rate unchanged. One basis point is one hundredth of one percentage point. The country's largest lender, SBI has reduced its MCLR by 5 bps across tenors, effective August 15. SBI has revised its overnight and one-month MCLRs to 7.90 per cent each from 7.95 per cent earlier. The one-year MCLR, to which most of the corporate loans are linked, has been revised to 8.75 per cent from 8.8 per cent. Its new MCLRs on two-year and three-year loans now stand at 8.8 per cent and 8.85 per cent, respectively. Another state-run lender, the Bank of Baroda has lowered its one-month MCLR by 35 bps to 7.95 per cent from 8.3 per cent, starting August 12. Its six-month MCLR stands revised to 8.65 per cent (from 8.75 per cent), while the one-year MCLR has been lowered to 8.8 per cent compared to 8.9 per cent. BoB has revised its overnight and three-month MCLRs by 15 bps to 7.95 per cent and 8.35 per cent, respectively. Chennai-headquartered Indian Overseas Bank has reduced its MCLR by 10 bps across all tenors from Friday. IOB's one-year and six-month MCLR have been revised to 8.9 per cent and 8.70 per cent, respectively. The bank is now offering an interest rate of 8.3 per cent on one-month MCLR, and 8.45 per cent on three-month MCLR. Bank of India revised its one-year MCLR by 10 bps to 8.9 per cent effective from August 1. In response to the 100-bps reduction in the policy repo rate since February, banks have adjusted their repo-linked external benchmark based lending rates downward by a similar margin. The one-year median MCLR of scheduled commercial banks has moderated to 8.75 per cent in July from 9.05 per cent in February. Introduced on April 1, 2016, MCLR is the minimum interest rate below which banks and non-banking finance companies (NBFCs) cannot lend. In order to further strengthen monetary policy transmission, the RBI introduced the external benchmark-based lending rate (EBLR), linked to the repo rate, in October 2019. All retail loans and floating rate loans to MSMEs are now linked to EBLR. Any hike or cut in the repo rate gets immediately reflected in loans linked to EBLR. However, a review of interest rates under the MCLR regime happens every month at a pre-announced date by all banks.
