Professional Documents
Culture Documents
N e w s S to c k Qu o t e
Home
News
Markets
I PO
Persona l Fi nance
Ec onom y
Te ch
Jobs
Opini on
Features
Environme nt
Bl ogs
PSU P r es s Re l e as e s N RI
ET N OW
N e ws B y Indus tr y Au t o
N e ws By Com pa ny
Em e rgi ng B usi ne s se s
E T Bu re au M ar 30 , 20 11, 0 4. 59a m I S T
0
Tweet
0
R ec ommen d
StumbleUpon Submit
T ags :
| S BI r i gh ts i ssu e | SB I | RB I | OP Bh a tt
Achi evements Rights issue OP Bhat t will be most remembered for SBI's rights issue of Rs 20,000 crore, coupled wit h employee st ock purchase scheme that no other PSU bank had ventured into. Besides, the bank also raised equity capital in 2008 when companies such as Wockhardt Hospitals and Emaar MGF pulled out their IPOs. It was a proof of shareholder faith in him.
Ad s b y Goo g l e
Sta te Ba nk Of I ndi a
2 190.00
1 .5 6 % 3 3 . 6 5 Vo l: 699 38 sh ares t rad ed
2 190.40
1 . 6 4 % 3 5 .3 5 V ol: 2702 26 sh ares t rad ed
The merger of SBI's associate banks wit h the parent was t alked about since mid-nineties when McKinsey first suggested it. Mr Bhat t recognised the need t o build a huge organisation wit hout working at cross purposes. Fortunately for Mr Bhat t, his predecessor, AK Purwar had set the ball rolling by creating a platform for mergers. Mr Purwar ensured a common technology platform and syst em s and procedures at associate banks. Mr Bhatt t ook it forward. He pushed merger of State Bank of Saurashtra with SBI at a t ime when the ruling party had a coalition with t he conservat ive Left . Controversies SBI's 8% fixed rate home loan scheme, in response to global crisis, gained enormous at tent ion. Although, arch rival and HDFC chief, Deepak Parekh was quick to term it as a gimmick. It s humongous success forced rivals to launch similar schemes, which offered fixed rate in initial years and floating rat e for t he remaining term of t he loan. RBI's then deputy governor Usha Thorat expressed concerns over such loans, calling them t easer loans. In response, most hom e loan providers decided to withdraw such schemes from the market , except SBI. To make a strong case, RBI asked banks to set aside higher capit al on such loans, probably to dissuade banks from offering such loans. Mr Bhatt, who felt that the bank's special loans can no way be called teaser scheme, declined t o make any provisions for such loans. "There is t ot al transparency on it, " said Mr Bhatt. "The customer is not taken by surprise. On the risk side, the eligibility is considered based on the highest int erest charged at t he time of giving loan. Neither is there opacity, nor is t here risk." Mr Bhatt , in fact, felt SBI was not given due credit. "We brought the home loan m arket back. Lakhs of people own their homes because we kept rates down. It pushed up the economy. But t his is som et hing that is not recognised by many. " But RBI remains worried about it - possibly relat ing it to t he US sub-prime crisis t hat sank the global financial system. "Some of us have a strong apprehension that the mot ivation for introducing t easer loans was not product innovation, but to deprive existing floating rate home loan borrowers from the full benefit of declining interest rates, based on market realities, " KC Chakrabarty, deputy governor at RBI, said in a recent interview. SBI and its
Prices
| Fina ncial s
| Compa ny Info
| Reports
ICICI Bank surprises with new home loan offering, rate for...
Au g us t 1 9 , 2 0 1 1
"A number of existing home loan borrowers did not get the benefit of lower interest rate." His anot her clash wit h the regulator was when he guaranteed bonds of Tata Steel worth Rs 4,200 crore. RBI
claimed that regulations do not allow banks to guarantee corporate bonds, while SBI st ood by its client - the Tata Group, which was unable to raise funds for the Corus Group purchase. Disputes wit h RBI does not seem to cease. The banking regulator downgraded SBI by one notch to B- on grounds that t he bank has made lower-than-required provisions for bad loans. The rating, which is highly confident ial and is not made public, had upset Mr Bhatt, who recently made a case to RBI to review it s rating. The biggest challenge for his successor would be to retain the aggressive brand that Mr Bhatt has created for the once sleepy bank.
Ad s b y Goo g l e
SBI Home Loans 0% Prepayment Penalty. EMI @914/Lac Apply and get Multiple Offers o an -em i -c al c u l a t or . c o. i n H om e-l SBl Best Pension Plan Rs 4.16K p.m. get back 43 lacs. Get Invest Quote i c y Ma g i c . c o. i n S Bl . Pol
FEATURED ARTICLES
Maruti Alto 800 launched at a starting price of Rs 2.44 lakh, gets 10,000 pre-orders Mor e: 'Gangnam Style' second most-viewed YouTube video How to choose a term insurance plan Celkon to launch SIM-based android tablet, priced at Rs 7499
Maruti Suzuki plans 800cc diesel engine, may deliver 30kmpl average
Extending the 'one rank one pension' rule to ex-servicemen was long overdue Micromax launches 10.1-inch tablet FunBook Pro for Rs 9,999 US election results: Barack Obama win has US investors staring at fiscal cliff
2 0 1 2 B e n n e t t, C ol e m a n & C o . Lt d . A l l r i g h ts r e s e r v e d w w w . e c on o m i c t i m e s. c om
In d e x b y D at e
In d e x b y Ke y w o r d
A d v e r t i s e w i t h u |s T e r m s of U s e| P r i v a c y P ol i c y| Fe e d b a c k