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Times of Oman
2 days ago
- Business
- Times of Oman
RBI policy brings cheer for Indian stocks: Nifty Bank soars over 800 points, realty skyrockets
New Delhi: The Indian stock indices ended on a strong note and surged after the larger-than-expected policy rate cut, reflecting elevated optimism among the market participants on the last trading day of the week. At the end of the trading on Friday, the BSE Sensex was at 82,188.99, up 746.95 points or 0.92 per cent, and the Nifty 50 was up 252.15 points or 1.02 per cent. The market analysts say that the RBI's decision to cut the repo rate exceeds expectations and gives a strong message to the markets that the apex bank is willing to move aggressively when macroeconomic conditions allow. Following the MPC outcome announcements, Nifty Bank hit a new high, and the Central Bank was surprised with a larger-than-expected policy rate cut of 50 basis points, taking the repo rate to 5.5 per cent. The Nifty Bank ended at 56,578.40, climbing over 817 points. "This big rate cut will impact the margins of the banks and, therefore, bank stocks will be under pressure in the near term. However, the credit growth that this rate cut will hopefully stimulate will compensate for the dip in margins," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. "The Indian stock market responded optimistically to RBI's surprise and aggressive growth push policy," Vijayakumar further added. CS Setty, Chairman at State Bank of India & Chairman at IBA said, "RBI today's monetary policy communication was action-packed - innovative, out of the box and an unanticipated surprise." "The policy is definitely positive for all sectors of the economy, particularly for banking and finance. In particular, lower cost of borrowing will act as a counterbalance to any uncertainty," he added. The investors also reacted strongly to the Realty, which rose over 4 per cent. Reacting to the rate cut announcement, Mayank Jain, CEO, KREEVA, a real estate developer, said, "The reduced borrowing cost will not only strengthen homebuyers' sentiments but also help in easing the liquidity flow in the market. "In light of significant market volatility and real estate witnessing a surge in the investment flow, this proactive approach signals the central bank's strong commitment to thrust economic momentum and boost investor confidence," Jain added.
Hans India
27-05-2025
- Business
- Hans India
SBI building scalable model for sustainable growth
New Delhi: SBI Chairman C S Setty has said the bank is building a scalable model for sustainable returns based on disciplined cost management, low-cost deposits, and expansion of fee-based income. 'With strong CASA (Current Account and Savings Account) growth, digital cross-sell capabilities, and margin-sensitive asset allocation, we are building a scalable model for sustainable returns,' he said in a message to the shareholders of the bank. 'Together, these strategic levers position us not just as India's largest bank, but as its most forward-looking — balancing trust, scale, and innovation to deliver long-term value for customers and investors alike,' he said in an annual report for 2024-25. SBI logged a net profit of Rs 70,901 crore in FY25, 16 per cent higher than Rs 61,077 crore in the previous fiscal. To achieve sustainable and risk-adjusted growth, he said, SBI is leveraging advanced analytics for credit underwriting, portfolio monitoring, and early warning detection. 'Our sector-specific risk frameworks are designed to strengthen asset quality and support responsible lending in priority areas, including MSMEs and infrastructure,' he said. As India's largest bank, he said, SBI's strategic focus is on improving operational efficiency, enhancing customer experience, sustaining market leadership, strengthening human resource capabilities, supporting risk-adjusted growth, and improving profitability. To improve operational efficiency, he said, SBI is streamlining processes using automation and data-driven decision-making. Stressing that the customer experience remains central to the bank's growth strategy, he said, the bank has taken several steps, including simplifying onboarding, enabling vernacular voice banking, and ensuring 24/7 digital support. SBI aims to deliver a seamless and inclusive experience across geographies, particularly for emerging segments in rural and semi-urban areas, he said.
Mint
26-05-2025
- Business
- Mint
SBI building scalable model for sustainable return by leveraging CASA, fee income: Chairman
New Delhi, May 26 (PTI) SBI Chairman C S Setty has said the bank is building a scalable model for sustainable returns based on disciplined cost management, low-cost deposits, and expansion of fee-based income. "With strong CASA (Current Account and Savings Account) growth, digital cross-sell capabilities, and margin-sensitive asset allocation, we are building a scalable model for sustainable returns," he said in a message to the shareholders of the bank. "Together, these strategic levers position us not just as India's largest bank, but as its most forward-looking — balancing trust, scale, and innovation to deliver long-term value for customers and investors alike," he said in an annual report for 2024-25. SBI logged a net profit of ₹ 70,901 crore in FY25, 16 per cent higher than ₹ 61,077 crore in the previous fiscal. To achieve sustainable and risk-adjusted growth, he said, SBI is leveraging advanced analytics for credit underwriting, portfolio monitoring, and early warning detection. "Our sector-specific risk frameworks are designed to strengthen asset quality and support responsible lending in priority areas, including MSMEs and infrastructure," he said. As India's largest bank, he said, SBI's strategic focus is on improving operational efficiency, enhancing customer experience, sustaining market leadership, strengthening human resource capabilities, supporting risk-adjusted growth, and improving profitability. To improve operational efficiency, he said, SBI is streamlining processes using automation and data-driven decision-making. "Routine tasks are being digitised to reduce manual effort, while centralised systems are enabling faster and more consistent operations across branches. By analyzing workflow patterns and eliminating redundancies, we aim to reduce turnaround time, lower costs, and increase overall service reliability," he said. These changes support a more scalable and responsive operational model suited to a large, diverse customer base, he said. Stressing that the customer experience remains central to the bank's growth strategy, he said, the bank has taken several steps, including simplifying onboarding, enabling vernacular voice banking, and ensuring 24/7 digital support. SBI aims to deliver a seamless and inclusive experience across geographies, particularly for emerging segments in rural and semi-urban areas, he said. Further, he said, "We are building omni-channel engagement models, supported by hyper-personalised offerings powered by Artificial Intelligence (AI)." SBI is forming strategic partnerships with fintechs, agritechs, and government-backed digital platforms to build a broader ecosystem.
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Business Standard
09-05-2025
- Business
- Business Standard
Biz correspondents' body to raise Atal Yojana renewal commission with banks
The Business Correspondent Resource Council (BCRC) is likely to raise the issue of non-payment of Atal Pension Yojana (APY) renewal commission by banks to business correspondents (BC), and is to seek a meeting with the Indian Banks' Association (IBA) to resolve the matter. BCRC had voiced its concern with the Pension Fund Regulatory and Development Authority (PFRDA), which advised it to reach out to banks directly for resolution. PFRDA said it releases APY incentives solely to APY Service Providers (APY-SPs). 'These APY-SPs, in turn, are responsible for distributing the incentives to their BCs, if applicable, based on their internal arrangements, agreements, and terms and conditions,' the regulator said in its communication to BCRC. In January this year, BCRC had taken up the matter of renewal commissions not being credited on social security schemes - Pradhan Mantri Suraksha Bima Yojana; and Pradhan Mantri Jeevan Jyoti Bima Yojana – to BCs with the Insurance Regulatory and Development Authority of India (Irdai). It was pointed out that BCs are the frontline workers driving penetration of the government's flagship schemes, and the absence of renewal commission is demoralising. This may result in reduced participation and outreach effectiveness in the long run given that BCs invest significant time and resources in out-calling, personalised follow-ups, and re-educating customers on financial literacy. As of April 2025, APY has accumulated over 7.65 crore subscribers, mobilised a total corpus of Rs 45,974.67 crore, and recorded increasing participation from women, who now comprise about 48 per cent of all subscribers. APY is aimed at workers in the unorganised sector, who often lack formal pension coverage. It was initially available to all citizens between 18 and 40 years of age, but effective October 2022, individuals paying income tax are not eligible to join the scheme. It provides subscribers with a fixed monthly pension at the age of 60 years, based on their contributions. The different slabs are Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, and Rs 5,000 per month. Banks receive a minimum of Rs 100 for each APY application, with incentives provided for promotional efforts and for new accounts opened during the year. The amount varies based on the number of APY subscribers with each bank. Of late, BCRC has voiced its worries on the viability of the BC channel with the Ministry of Finance. In November last year, this issue was flagged in a meeting with the Minister of State for Finance Pankaj Chaudhary. During the talks, the BCRC revisited the problems highlighted by the working group set up under the chairmanship of C S Setty in December 2022. Setty, who is currently chairman of State Bank of India, was the bank's managing director at the time. It may be recalled that the first steps for rolling out the digital audit of the over 2.5 million BCs along with their training and certification was decided at a meeting held at the Department of Financial Services (DFS) with the monitoring committee on the functioning of BCs. A working committee is to be formed headed by one of the managing directors of the SBI with members drawn from Yes Bank as well as the Business Correspondents' Federation of India. Other issues which figured at this DFS meeting were the penalties imposed on BCs by banks, as well as the amounts charged by banks as security deposits, which range between Rs 50 lakh and Rs 1.8 crore for 1,000 kiosk points. It was indicated that the establishment of an infrastructure and equity fund for corporate BCs, with the option to tap the National Bank for Agriculture and Rural Development (Nabard), and the RBI Payments Infrastructure Development Fund, may be taken up at a later date.
Time of India
05-05-2025
- Business
- Time of India
SBI loan growth hit as cos use IPO funds to pare debt
MUMBAI: SBI attributed a slowdown in loan growth to companies using equity issue proceeds to repay debt and deleverage. The country's largest bank projected credit growth of 14-16% for FY25 in Q2 but moderated its guidance in the next quarter to the lower end of that range. Tired of too many ads? go ad free now However, by the end of FY25, the bank's total advances rose 12% to cross Rs 42 lakh crore. Growth was weighed down by the corporate segment. Loans to small & medium enterprises rose 16.9% to over Rs 5 lakh crore, while grew 14.3%. and rose 11.4% and 9%, respectively. Home loans, which grew 14%, were the key driver of retail credit. Bank officials said many large central PSUs used equity funding to pare debt, leading to prepayments that couldn't be compensated within a quarter. "We still have visibility in corporate credit. While we are not expecting 14-16% growth, 12-13% is quite possible as the industry is growing below 12%," an official said. In FY25, NTPC raised Rs 10,000 crore through an IPO. "Corporate is a bulky and chunky credit, and we had an unusual prepayment in that segment," SBI chairman C S Setty said during an analyst call. "While we have a Rs 3.4-lakh-crore pipeline in corporate loans, unanticipated prepayments impacted growth." The bank said credit demand was coming from infrastructure, renewable energy, data centres, and commercial realty. The official added the bank had Rs 1.7 lakh crore in sanctioned but undisbursed corporate loans. "We hope there are no further prepayments. Broadly, we are sticking to a 12% growth target in the corporate book," the official said. On Saturday, SBI reported an 8.3% drop in consolidated net profit to Rs 19,600 crore for the March quarter from Rs 21,384 crore a year earlier, as net interest margins declined. Standalone profit fell to Rs 18,642 crore from Rs 20,698 crore.
