Friday, March 9, 2018

Power is a stressed sector for entire banking space, says SBI

Mumbai, March 8:  The power minister has said that State Bank of India is "worried" about its exposure to the Mundra power projects of both Adani Power and Tata Power. He also went on to express concerns over stressed assets in the power sector as a whole. In an interview to CNBC-TV18, Sunil Srivastava, Deputy MD of SBI spoke about the same.

Srivastava said that power is a stressed sector for the entire banking sector. He further said that there is a problem related to distribution and DISCOMS' (Distribution Companies) health. “Addressing these issues in a short possible time of six months is going to be very-very difficult,” said Srivastava.

According to him, there are 34 thermal power plants under stress. DISCOMS looking at buying cheap power over exchange than honouring their contract, he added.

Srivastava also mentioned that Central Electricity Regulatory Commission (CERC) is taking time in revising tariffs. There are still a few power plants that could be classified as non-performing assets (NPAs). However, not all gas-based power plants are under stress, he said.

Thursday, March 8, 2018

RBI slaps Rs 40 lakh fine on State Bank of India for breach of norms on counterfeit notes

Giving the background for the penalty, the banking regulator said that the currency chest inspection of two branches of SBI revealed, inter alia, violation of the instructions issued by RBI.

Mumbai, March 7: State Bank of India (SBI) has been hit with a monetary penalty of Rs 40 lakh for violating RBI rules on Detection and Impounding of Counterfeit Notes.

“The Reserve Bank of India (RBI) has imposed, on March 01, 2018, a monetary penalty of Rs 4 million (Rs 40 lakh) on State Bank of India (the bank)…This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers,” RBI said in a statement on its website.

Giving the background for the penalty, the banking regulator said that the currency chest inspection of two branches of SBI revealed, inter alia, violation of the instructions issued by RBI on Detection and Impounding of Counterfeit Notes.

“Based on the inspection report and other relevant documents, a Notice, dated January 05, 2018, was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with directions issued by RBI. After considering the bank’s reply and oral submissions made in the personal hearing, RBI came to the conclusion that the aforesaid charges of non-compliance with RBI directions/ guidelines were substantiated and warranted imposition of monetary penalty,” RBI added.

This comes two days after the central bank penalised Indian Overseas Bank (Rs 2 crore) and Axis Bank (Rs 3 crore) for breaching KYC (know your customer) norms and asset classification (NPA) guidelines, respectively.

Saturday, March 3, 2018

SBI increases deposit rates for various tenors

Mumbai, February 28 (PTI): Country’s largest lender State Bank of India has revised retail and bulk deposits rates by up to 0.75% for various maturities, effective today.

For retail deposits, below Rs 1 crore, rates have been increased by up to 0.50%.

For deposits maturing in one year to less than two years, rates have been raised by 0.15% to 6.40% from 6.25% earlier.

The retail deposit rates for two years to up to 10 years have been changed by 0.5% to 6.5% from 6%. The lender revised its bulk term deposit rates for the third time in as many months.

For Rs 1 crore to Rs 10 crore bulk deposits, maturing in one year to less than two years, the bank raised rates by 0.5% from 6.25% to 6.75%.

For deposits maturing in two to less than three years, the rates have been increased by 0.75% to 6.75%.

For above Rs 10-crore bulk deposits maturing between one year and less than two years, the rates have been raised by 0.5% to 6.75%.

Rates for bulk deposits maturing between two to less than three years is increased by 0.75% to 6.75%.