SBI in international bond market to raise nearly $500 mn in green bonds

The nation's largest lender State Bank of India Wednesday raised the first tranche of USD 650 million through a maiden green bond offering, which is part of its planned USD 3 billion in such funds for onward lending to green projects.

The five-year dollar money is priced at the US treasury plus 165 basis points, while from for an British investor the coupon will be 3 Libor plus 151 bps.

"SBI has successfully priced our maiden green bonds, a five-year money for USD 650 million at T+ 165 bps, corresponding to 3L + 151 bps approximately," a merchant banking source official said.

The money is raised through the bank's London branch, the source added.

With this issue SBI will become compliant with the global standards as prescribed by the Climate Bonds Initiative, a global not-for-profit investor-focused organisation.

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Buy SBI for a target of Rs 282, stop loss of 250: Prabhudas Lilladher

Nifty outlook and few trading ideas by Vaishali Parekh, Research Analyst - Technical Research at Prabhudas Lilladher:

NIFTY VIEW
Nifty has its trend of all periodicities down, however for now 10,550 holds to be a crucial support level & a decisive move past 10,730-10,750 would make way for higher targets. The support for the day is seen at 10,600 while resistance is seen at 10,710. Paint stocks and energy sector should do well in days to come. With the onset of result earnings, we anticipate stock specific momentum.

BUY SBI
CMP: Rs 258.85
TARGET: Rs 282
STOP LOSS: Rs 250
The stock has witnessed a decent erosion from the peak of 290 to show signs of bottoming out at around 255 levels which is also where the significant 50 DMA moving average lies. The chart looks attractive and we anticipate a bounce back from here on in the coming days. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 282 keeping a stop loss of 250.

BUY HIND ZINC
CMP: Rs 279.80
TARGET: Rs 300
STOP LOSS: Rs 268
The stock has made a lower bottom formation pattern in the daily chart at around 270 levels and has indicated a revival with strength and potential to rise further in the coming days. The RSI also has hit the highly oversold zone and has indicated a trend reversal to signal a buy and thus maintaining a positive bias for still more upward move. With good volume participation witnessed and the chart looking attractive, we recommend a buy in this stock for an upside target of 300 keeping a stop loss of 268.

SBI gains 7% post Q2 results

STOCK MARKET - State Bank of India (SBI) has moved higher by 7% to Rs 338, bouncing back 8.5% from intra-day low on the BSE, after the bank’s assets quality in September quarter (Q2FY18) improves on sequential basis. The stock hit a low of Rs 310 in intra-day trade.

Rakesh Tarway, head of research, Reliance Securities belives the slippage ratio declining to 1.85% in Q2FY18 from 5.38% in Q1FY18 pushed the stock higher. He advises that investors stay put in the stock for now.


The bank’s gross non-performing assets (NPAs) during the quarter under review declined to 9.83%, as against 9.97% in Q1FY18. Net NPAs, too, fell to 5.43% of the net advances at the end of second quarter this fiscal, from 5.97% in the previous quarter.

Slippage ratio declined to 1.85% in Q2FY18 from 5.38% in Q1FY18, significantly improved across all segments. The bank said the special recovery teams formed at all critical processing centres and requisitioned services of retired bank officials to boost recoveries.

Net interest income (interest income minus interest expenses) grew 5.6% at Rs 18,586 crore in Q2FY18 against Rs 17,606 crore in previous quarter. The bank reported net profit of Rs 1,582 crore against Rs 2,006 crore in Q1FY18.

The trading volume in the counter more than doubled, with a combined 51.46 million shares changing hands on the BSE and NSE till 01:42 PM.

SBI Life Insurance extends fall, slips below IPO price

SBI LIFE INSURANCE company changed into down 1% at Rs 693 in intra-day change, falling underneath its preliminary public offer (IPO) charge of Rs 700 per proportion at the countrywide inventory exchange (NSE) and BSE. The stock hit its lowest level for the reason that list on Tuesday, October 3, 2017.

At 09:32 AM; the inventory became trading at Rs 694 on BSE, a 1% beneath its difficulty price, as compared to 0.14% upward push within the S&P BSE Sensex. A combined 217,060 shares changed hands on the counter on BSE and NSE to this point.


SBI lifestyles insurance organization had made a pretty debut with the aid of list at Rs 735, a 5% top class in opposition to its issue price of Rs 700 in keeping with percentage on the NSE. The inventory was down 6% from its high degree of Rs 738 touched on the NSE in intra-day change on first day of its listing.

SBI existence’s Rs 8,400-crore IPO ultimate month had received three.6 times call for than the shares on offer. Bulk of the bids (almost eighty five%) came in from institutional buyers, even as the retail and excessive internet really worth individual (HNI) portion of had been now not fully subscribed.

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SBI Life Insurance lists at 5% premium to IPO price of Rs 700

SBI Life Insurance Company made a quite debut by listing at Rs 735, a 5% premium against its initial public offer (IPO) price of Rs 700 per share on the National Stock Exchange (NSE).

At 10:02 AM; the stock was trading at Rs 734 on the NSE. It hit a high of Rs 740 and low of Rs 730 so far. A combined 11.5 million shares exchanged hands on the NSE and BSE.

The company’s Rs 8,400 crore IPO was subscribed 3.587 times. The portion meant for qualified institutional buyers (QIBs) was oversubscribed 12.56 times, while that of non-institutional investors received 70% subscriptions and retail investors 85%, data available with the NSE showed.

SBI Life is a joint venture between India’s largest lender State Bank of India and BNP Paribas Cardif, the insurance holding company of France.

SBI Life Insurance is the largest private insurer in terms of new business premium (NBP) generated with 20.04% market share and has assets under management (AUM) of Rs 97,700 crore. The company is riding on ULIP business (71% APE mix) which has lower regulatory risk, lower capital requirement and long term opex benefit, but also has lower margins and is highly dependent on capital market performance.

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SBI Life Insurance IPO opens today. Should you invest?

SBI Life Insurance Company Ltd is the India’s largest private life insurer in terms of new business premium (NBP) generated in each fiscal year since FY10. It has also increased its market share of NBP generated among private life insurers in India, from 15.9% in FY15 to 20% in FY17. Over FY15-17, the company’s NBP increased by 35.5% CAGR, which is the highest among the top five private life insurers (in terms of total premium in FY17) in India.

The company's maiden issue opens for subscription today. At the IPO price band of Rs 685-700, the stock is available at P/IEV multiple of 4.2x FY17 (post issue) at the upper end of the price band. Post issue market capitalisation is at around Rs 70,000 crore.

So, should you subscribe to the issue? Here's what leading brokerages and research houses suggest.

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Demonetisation hit RBI's seigniorage, increased printing cost: SBI Research

Demonetisation has caused a net loss to the Reserve Bank of India's (RBI's) seigniorage -- the profit accruing from currency issuances and liquidity operations -- besides increasing the cost of printing notes, says an SBI Research report.

On November 8 last year, the government had banned old Rs 500 and Rs 1,000 notes in an attempt to weed out black money in the country. The old notes were allowed to be deposited in banks, with unusual deposits coming under income tax scrutiny.

"The demonetisation exercise has resulted in net loss of seigniorage to the RBI," SBI's research report Ecowrap said.

"In the current case, there is a seigniorage loss, as the face value of Rs 15.28 lakh crore (15.28 trillion) of Rs 17.10 lakh crore (17.1 trillion) has been printed," it said.

The report further said that "the cost of printing notes and coins has increased during this year".

In its Annual Report for 2016-17, RBI has said that post demonetisation, it has spent Rs 7,965 crore on printing new Rs 500 and Rs 2,000 and other denomination notes, more than double the Rs 3,421 crore spent in the previous year.

SBI gains after cutting savings bank rate to 3.5% for deposits below Rs 1 cr

STOCK MARKET - Shares of public sector undertakings (PSU) banks were trading higher by upto 4%, recovering from their intra-day lows, after the state-owned banking giant State Bank of India (SBI) cut saving bank interest rates.

SBI rallied by 2.7% to Rs 307 on BSE after the bank introduced a two-tier saving bank interest rate from today, due to the decline in the rate of inflation and high real interest rates.

“The Bank is introducing 2 tier saving bank interest rate w.e.f. 31st July, 2017. While balance above Rs 1 crore will continue to earn interest rate at 4% per annum, interest rate at 3.5% per annum shall be offered on balances of Rs 1 crore and below,” SBI said in a press release.

The decline in the rate of inflation and high real interest rates are the primary considerations warranting a revision in the rate of interest on saving bank deposits, it added.

The revision in saving bank rate would enable the bank to maintain the MCLR (marginal cost based lending rates) at existing rates, benefiting a large segment of retail borrowers in SME, agriculture and affordable housing segments, it added.

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All ATM withdrawals not chargeable, SBI clarifies after furore in Kerala

Amid a public outcry in Kerala over a State Bank of India (SBI) announcement levying charges on ATM cash withdrawals from June 1, the largest public lender on Thursday clarified that the charge of Rs 25 is applicable only for withdrawals from SBI Buddy through ATMs.

"Rs 25 per transaction charge is applicable only for mobile wallet app SBI Buddy using ATM. This is applicable only for State Bank Buddy customers," the bank said here in a statement.

The clarification comes after the SBI in a notification indicated that all ATM withdrawals will be charged a fee of Rs 25, which was later replaced with the corrected notification.

The bank said that the number of free withdrawals from ATMs remained unchanged.

Jan-Dhan account holders with the SBI can avail of four free withdrawals in a month from ATMs.

Normal savings bank accounts holders will continue to get eight free ATM transactions (five from SBI ATMs plus three from other bank ATMs) in metros and 10 free transactions in non-metros (five from SBI ATMs plus five from other bank ATMs).

Earlier in the day, Kerala Finance Minister Thomas Issac told the media that the only reason he could see for this "mad" new rule was that the SBI was faced with mounting non-performing assets (NPAs) to the tune of Rs 1.67 lakh crore.

"This is height of madness and irresponsibility. It would be interesting to find out the list of NPAs of the SBI... One wouldn't be surprised if the majority (of defaulters) are found to be corporates."

"Just take a look at their (SBI) profits, it has dramatically come down. The charges have been levied to bring down their losses. This is something that even private sector banks would not dare think of doing," said Issac.
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SBI cuts affordable home loan rates to 8.35%; lowest in market

India's largest lender, the State Bank of India (SBI), on Monday announced a steep reduction of 25 basis points (bps) in affordable housing loans to 8.35 per cent for new borrowers.

Under the new government scheme, loans under Rs 30 lakh qualify for affordable housing.

For male borrowers, the limited period offer is valid till July 31 and the reduction is 20 bps to 8.40 per cent, SBI Managing Director for national banking Rajnish Kumar told PTI in a conference call.

The new rate reduction of 25 bps for women will be for salaried borrowers. For non-salaried borrowers, it will be a 20 bps cut.

Similar rates will be applicable for male salaried and non-salaried borrowers.

One percentage point is 100 bps.

"This a huge saving for the borrower as the 25 bps reduction translates into a saving of Rs 530 per month on EMIs," he said.

The new rates will be effective from Tuesday.

"This is giant leap to give a fillip to the affordable housing segment keeping the Prime Minister's vision of providing 'housing for all' by 2022," Kumar said, adding that the lender now offers the lowest rates in the industry.

With a home loan book of Rs 2.23 lakh crore, SBI leads the segment with 25-26 per cent market share, Kumar said further.

However, he is of the view that the new offer may not push up SBI's market share significantly as 45 per cent of its 2.23 lakh crore home loan book is under the Rs 30 lakh bracket.
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Vijay Mallya arrested in London, gets bail; could be extradited to India

Businessman Vijay Mallya has reportedly been arrested in London by Scotland Yard just weeks after UK set in motion the process of extradition of the industrialist who has been declared a proclaimed offender.

Mallya fled to UK in March 2016 after being pursued in courts by banks seeking to recover about Rs 9,000 crore owed by his Kingfisher Airline.

Last month, the British government certified India's request and sent it to a district judge for further action.

CNBC-TV18 on Tuesday reported that Mallya has been produced in a local court in the UK and will soon be handed over to India.

Mallya, however, later tweeted that the whole arrest issue was "the usual Indian media hype" and that it was only the scheduled court hearing on extradition that had taken place:

Vijay Mallya 

✔@TheVijayMallya

Usual Indian media hype. Extradition hearing in Court started today as expected.

Mallya has avoided several summon notices from Indian courts.  

Despite multiple injunctions, he has failed to appear before investigators at the Enforcement Directorate in connection with a probe under the Prevention of Money Laundering Act (PMLA).

Earlier in January this year, a CBI court had issued a non-bailable warrant against Mallya in the Rs 720-crore IDBI Bank loan default case.

Mallya, whose now-defunct Kingfisher Airlines owes more than Rs 9,000 crore to various banks, had fled India on March 2, 2016.

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Govt asks SBI to reconsider minimum balance penalty

BREAKING NEWS - The government on Monday asked State Bank of India (SBI) to reconsider its decision to levy penalty on non-maintenance of minimum balance, which the bank plans to hike manifold from April 1 impacting over 310 million savings bank account holders.

SBI, according to a source, has also been asked to reconsider charges it proposes to levy on cash transactions and ATM withdrawals over specified limits.

The country’s largest lender has announced imposing penalty ranging from Rs 20-100 on non-maintenance of minimum average balance (MAB) in savings bank accounts from April 1.

The penalty is as high as Rs 500 in case of current accounts.

The penalty for breach of MAB is being reintroduced after a gap of five years.

The bank has also increased the minimum balance requirement by many times, which is as high as Rs 5,000 for account maintained with branches in six metro cities.

SBI has also imposed restrictions on withdrawals of cash from its branches as well as ATMs. These will attract charges after certain specified limits.(READ MORE)

SC grants Vijay Mallya 3 weeks to file reply to SBI led consortium

Latest  Business News - The Supreme Court on Wednesday granted three weeks time to liquor baron Vijay Mallya to file a reply to the SBI led consortium of banks who sought deposit of the amount of 40 million dollars.

The bench headed by Justice Kurian Joseph comprising Justice A. M. Khanwilkar granted Mallya three weeks time and posted the matter for further hearing till February 2.

The consortium of banks had earlier approached the apex court seeking its intervention in bringing back Mallya to India and also repayment of money which the beleaguered businessman, who has absconded to England, had taken.

The banks, in their plea, told the apex court that there was an outstanding loan of almost Rs 9,000 crore against (Read More)

Cash deals worth Rs 25,000 cr move to digital mode post note ban: Survey

Latest Business News - Post demonetisation, cash-based transactions worth Rs 25,000 crore have moved to the digital mode, says a survey.

The Economic Research Department of State Bank of India carried out the survey from December 30, 2016 to January 3, 2017 so as to understand the nuances of demonetisation. It showed that 15 per cent of transactions moved to electronic payments such as m-wallets and Point of Sale machines.

"This means that Rs 25,000 crore of cash based transactions have moved to digital in the last two months. If this is so, this is a good beginning," SBI Research said in its Ecowrap report.

This number could have been even higher because the behavioural shift has not happened yet and many merchants still prefer cash transactions when the amount is not large, the survey said, adding that a number of merchants are facing connectivity issue at POS machines.

It further noted that around 69 per cent of the respondents affirmed that their businesses were impacted and the overall decline in business is less than 50 per cent for the majority of the businesses that were impacted.(Read More)

Banks slash rates in New Year gift; SBI leads and PNB, Union Bank follow

Beaking News - The country’s largest bank State Bank of India (SBI) announced a steep interest rate cut in several years on Sunday, by reducing its marginal cost of funds based lending rate (MCLR) by 90 basis points (bps) across all maturities. 

With this cut, SBI has passed on benefit of 200 bps since January 2015 to customers, which is more than 175 bps reduction in the Reserve Bank of India’s (RBI) policy rate cut in the same period. 

The new rates come into force from today. SBI’s one-year MCLR stands reduced to 8% from 8.9%, while the rate on overnight loans is now 7.75%, against 8.65%. 

Banks are flush with funds after the note ban, with Rs 12.4 lakh crore having been deposited with banks till December 10. SBI chairman Arundhati Bhattacharya said, “There is huge liquidity with the bank due to the large flow of deposits. This has driven us to reduce lending rates, which, hopefully, will kickstart credit demand and growth.” 

Two other public sector lenders - Punjab National Bank (PNB) and Union Bank of India - also slashed their MCLR rates on Sunday. Delhi-based PNB cut lending rates by 70 bps, while Mumbai-based Union Bank reduced its MCLR by 65 bps to 90 bps across different tenors. 

Senior bank officers said other lenders would follow suit and reduce loan rates by 50-100 bps to remain competitive. Also, the actual benefit to borrowers will be lesser than the extent of the MCLR cut due to the spread that banks charge over the loans rate.(Read More)