SBI IN THE NEWS

SBI not ruling out write-offs, post-merger (Jun 14, 2017)

THE country's largest lender SBI has said write-downs or write-offs on account of the merger of five associates cannot be entirely ruled out. In the largest consolidation in the banking space, five associate banks and Bharatiya Mahila Bank were merged on April 1 with SBI, putting the lender in the league of top 50 global banks. SBI is in the process of integrating the merged entities' operations with its own to leverage cost and operational efficiencies. "There can be no assurance that the bank will not have to undertake write downs or write-offs in connection with the merger, which could have a negative impact on its financial condition and results of operations," said SBI's offer document for the recently conducted Rs 15,000 crore share sale through private placement while highlighting the risk factors. The issue earlier this month was lapped up by foreign as well as domestic institutional investors. In its annual report, SBI had said the long- term benefits of the merger would significantly outweigh the near-term challenges.

"The resulting cost advantage, enhanced reach and economies of scale from this merger will help SBI sustain its mission of being an enduring value creator," it said. The offer document placed before the institutional investors further said the bank "may also incur additional costs" towards integrating operations and harmonising functions pursuant to the merger. "In particular, the absorption of over 70,000 employees of the merged entities is expected to increase employee benefit expenses, mainly accruing out of liabilities with respect to provision of additional superannuation benefits," it said.

SBI Card may get new JV partner by September-end(Jun 14, 2017)

The country's largest lender State Bank of India (SBI) on Tuesday said it expects to get on board a new partner for its card business in the next three months. Besides, the bank sees its card business becoming number one in the country in terms of issuance and user base on the back of innovative products and growing number of account holders. US-based General Electric (GE)has already announced its decision to exit SBI Card as part of its global restructuring exercise. SBI is in the process of finalising the new joint venture partner, SBI managing director Dinesh Kumar Khara said. "There is process of identifying the buyer and the process is already on. It is in advanced stage. We will be waiting to hear from GE very soon. We expect that to happen maybe in one quarter," he said after launching Prime, a premium credit card targeted at the growing segment of young, urban affluent consumers.

Following the exit, SBI's stake in SBI Card will increase to 74 per cent while remaining26 per cent will go to the new partner. SBI Card MD Vijay Jasuja said the company, which has a base of 4.8 million users, plans to double the figure in one year. Currently, HDFC Bank is the largest credit card provider in the country with a base of around 7.8 million cards. Jasuja said SBI's aim is to be the largest credit card player in terms of card issuance in the next one year. "There are more than 30 million SBI customers who are eligible for credit cards. We will be tapping these customers to increase our card base. Even if we convert3-4 million of these customers, we will be able to bridge the gap with the market leader," he said.

SBI keen to take card arm public over the medium term (Jun 14, 2017)

State Bank of India, the country’s largest bank, plans to take its credit card venture SBI Card, public over the medium term, a top official said. SBI Card, the second-largest credit card issuer in the country, is also looking to become the industry leader over the next one year. “We definitely have plans to take SBI Card public. Much of it would depend on the completion of transaction that would raise our stake to 74 per cent in SBI Card. The intent to go in for initial public offering is there,” Dinesh Khara, Managing Director (Associates and Subsidiaries), SBI, told Business Line here. Plans are also afoot to merge the two entities comprising the SBI Card joint venture with GE. This would happen after GE’s exit. SBI hopes that the transaction involving GE’s exit and it raising stake to 74 per cent will get over in the next quarter (July- September).

SBI Card is a joint venture of SBI and GE Capital, and operates through two businesses — SBICPSL and GE Capital Business. While SBICPSL markets and distributes cards, the GE Capital Business does the back-end work, including technology and processing. Currently, SBI holds 60 per cent in SBICPSL and 40 per cent in GE Capital Business. Khara said that GE is in the process of identifying the buyer for its stake in SBI Card. Earlier, SBI was hoping that this transaction would be completed by end-June. “They (GE) had given us some options as to who would be okay for us. We have done that and the final decision on to whom they will sell the share has to be now taken by GE,” he said. He also said that SBI would be able to raise the stake to 74 per cent only after GE decides on the buyer. SBI is now looking to raise its stake to 74 per cent from 60 per cent in the front-end and to 74 per cent from 40 per cent in the back-end entity.

PRIME card Meanwhile, SBI Card has launched ‘PRIME’, a premium credit card targeted at the growing segment of urban, young affluent consumers. For this offering, SBI Card has partnered with Vistara, Trident Hotels, Reliance Retail, BigBasket, Pizza Hut and Priority Pass to offer exclusive benefits to cardholders. “PRIME is designed to complement the lifestyles of these evolving, neo-affluent consumers, clubbing exclusive lifestyle privileges with enhanced value on their daily spends,” said Vijay Jasuja, CEO, SBI Card. Jasuja said that urban professionals — with rising disposable incomes — are aspiring for a superior lifestyle at an early stage in their lives. There is a perceptible shift in the premium consumer segment, with more consumers in this segment now falling in the 25-35 years age group. Over 50 per cent of SBI Card’s premium customers today are in this age bracket, Jasuja said, adding that this shift has been driven by urban consumers.

Rs.15,000-cr QIP credit positive for SBI: Moodys (Jun 13, 2017)

According to Moody’s Investors Service, the Rs.15,000-crore capital raised by State Bank of India via qualified institutional placement is credit positive for the bank as it strengthens its capitalisation and supports credit growth, particularly given the increasing requirements for equity under Basel- III, said Moody’s Investors Service. Using SBI’s capital position as of March 2017, Moody’s estimated that the capital raised will increase the bank’s common equity tier 1 (CET1) ratio by about 100 basis points to about 10.8 per cent. One basis point equals one-hundredth of a percentage point. “The additional capital will support the bank’s solvency as its balance sheet expands. We expect that SBI will grow its risk weighted assets by 15 per cent in fiscal 2018 (which ends March 2018) and fiscal 2019, in line with the growth registered in fiscal 2017.

“These growth assumptions and our expectation that credit costs will remain a key drag on the bank’s profitability lead us to estimate that SBI’s CET1 ratio will be about 10.1 per cent at the end of March 2018 and 9.5 per cent at the end of March 2019,” said the global credit rating agency. Moody’s observed that the capital raised will also eliminate the bank’s dependence on capital infusions from the government to meet the Basel-III minimum CET1 requirement of 7.825 per cent at the end of March 2018 and 8.6 per cent at the end of March 2019 (this minimum includes a capital surcharge imposed by the Reserve Bank of India on SBI owing to the bank’s classification as a domestic systemically important bank). As such, any infusion from the government will further strengthen the bank’s capitalisation, it added.

SBI’s asset quality has experienced increased stress since June 2011, although Moody’s believes that recent developments provide some confirmation that the bank has moved past the worst of its current asset quality cycle. Although SBI’s core earnings (pre-provisioning profits) are strong relative to other Indian public sector banks, the agency expects high credit costs to continue eroding profits as the bank devotes resources to rebuilding its provisioning coverage, leaving little for balance sheet growth. The agency elaborated that credit costs consumed 68 per cent of its pre-provisioning income and reduced its return on average assets to 0.41 per cent in the year ended March 2017 from 0.68 per cent in the year ended March 2015.

SBI's paid up capital rises to Rs863 crore after QIP (Jun 13, 2017)

State Bank of India (SBI) on Monday said its paid up capital has increased to Rs863 crore following the Rs.15,000 crore share sale through qualified institutional placement (QIP) route. "Pursuant to the allotment of equity shares in the issue, the paid up equity share capital of the bank stands increased from Rs810 crore to Rs863 crore," SBI said in a regulatory filing to stock exchanges.

Note ban may continue to drag down economy, hit business: SBI (Jun 12, 2017)

The country's largest lender, State Bank of India, has expressed apprehension that demonetisation might continue to slow down the economy and adversely affect the bank’s business. The government had discontinued Rs.500 and Rs.1,000 banknotes from November 9, 2016 and issued new Rs.500 and Rs.2,000 currency notes in their place. The long-term impact of this move on the Indian economy and the banking sector is uncertain, SBI told institutional investors prior to its Rs.15,000-crore share sale through private placement.

The effects of India's recent demonetisation decision are uncertain, which may adversely affect the bank’s business, results of operations and financial condition, the bank said in the preliminary placement document to investors while flagging the 'risk factors'. "The demonetisation has and may continue to result in a slowing down of the Indian economy, which may adversely affect the bank's business," it said. The document contains forward-looking statements that involve risks and uncertainties. Further, it said the financial performance may differ from "such forward- looking" statements as a result of certain factors. Post-demonetisation, there has been a surge in the current and saving account (CASA) deposits of banks.

As per an RBI report, the sharp increase in the share of CASA deposits in aggregate deposits by 4.10 per cent to 39.30 per cent (as of February 17, 2017) resulted in a reduction in the cost of aggregate deposits, and banks have correspondingly lowered their term deposit rates. As a result, the bank may face increased competition from commercial banks and other lending institutions, it said while highlighting the risks associated with demonetisation. SBI said increased competition may have an adverse effect on the net interest margin and other income and if the bank is unable to compete successfully, its profitability may decline. "The move could also result in an increase in compliance costs and higher incidents of fraud.

Any one or more of these events, if and when they occur, could have a material effect on the bank's business, results of operations, financial conditions as well as reputation," the document said. Post-merger of five associate banks and the BharatiyaMahila Bank from April 1, SBI has figured among the top 50 global banks (up from 55th position in 2016). Its balance sheet size is Rs 33 lakh crore and has 24,017 branches and 59,263 ATMs, servicing over 42 crore customers.

Helped by SBI issue, QIPs on course for a record breaking year (Jun 12, 2017)

Qualified institutional placements (QIPs) since the beginning of 2017 have crossed Rs.31,000 crore, powered by large issues from banks, and appear poised to set a record this year. QIP is a capital-raising tool through which listed companies can sell shares, fully and partly convertible debentures, or any securities other than warrants that are convertible into stocks, to a qualified institutional buyer. According to data from Prime Database, a primary market tracker, in less than six months, 13 companies managed to raise Rs31,406 crore through QIPs.

This compares with Rs31,684 crore in all of 2014 and just a couple of thousand crores short of the record Rs34,675 crore in 2009. “QIPs are a bull market phenomenon. In a depressed market, you will hardly see QIPs; but in a bull market, when the markets are seeing new highs, you will definitely see high activity. It is a very good time for issuers,” said PrithviIlaldea, chairman of Prime Database group. The surge in QIPs has been driven by record-breaking offerings by public sector bank State Bank of India, which raised Rsl5,000 crore last week in the largest QIP in the country and Kotak Mahindra Bank Ltd’s Rs.,803 crore offering, the largest ever by a private sector bank. Investors who are convinced financial services will be the primary beneficiary of the country’s growth prospects and expected political stability over the next few years are pumping money into bank QIPs, said experts.

"Investors believe that the Indian economy is doing very well and are also convinced about political stability over the next few years, leading to India emerging as the favoured nation among several emerging markets. Institutional investors believe that India’s nominal GDP (gross domestic product) can grow7 in the 10% to 12% range, adjusted for inflation, and if that is the case, then the financial services sector will glow even faster at around 1.5 times nominal GDP translating to around 15%-17% growth,” said V. Jayasankar, senior executive director and head of equity capital markets at Kotak Mahindra Capital Co. Ltd. “As private sector investments are yet to take off in any significant way, we believe that banks and financial services will be at the forefront of fund-raising this year,” he said. “Well-positioned private sector banks, public sector banks and NBFCs can benefit significantly if they need to raise growth capital,” he added.

On the issuer side, the need to recapitalize balance sheets, hopes of a gradual pick-up in lending and expected resolution of bad loans at banks, are some of the factors driving fund-raising. “While public sector banks are looking to shore up balance sheets, private sector banks are positioning themselves for the gradually expanding growth in advances. Multiple private sector banks are witnessing pick-up in demand for retail loans which should be further supported by a good monsoon this year,” said Munish Aggarwal, director at investment bank Equirus Capital. Valuations of many private sector banks are at a cyclical peak which helps them raise capital with limited equity dilution, said Aggarwal.

Expectations of a resolution of asset quality concerns through improvement in underlying economic activity as well as a proactive approach by the government and the regulator to help resolve the challenges are also helping banks to tap the equity market to raise capital, he added. Strong liquidity in the stock markets has also helped banks aim for fund-raising that is significantly larger than those in the past. “This year is also the first time since the Lehman crisis that we are witnessing strong flows from both FPIs (foreign portfolio investors) and Dlls (domestic institutional investors). In our estimate, this may together touch $30 billion” said Jayasankar.

SBI raises RS 15,000 crore via QIP (Jun 09, 2017)

The country’s largest lender SBI on Thursday said it has raised Rs.15,000 crore by selling 52.2 crore shares through qualified institutional placement, the largest share sale in the secondary market by a bank. SBI had opened the share sale through private placement on June 5. In a regulatory filing, the bank said its central board decided to close the issue on Thursday and accorded its consent for the same. The total proceeds of the issue will be used to augment its capital adequacy ratio and for general corporate purposes, in accordance with applicable law, the bank had said earlier.

In rural & semi-urban banking, State Bank of India is new poster boy (Jun 09, 2017)

Country roads, take me home.” The State Bank of India (SBI) seems to be crooning the old John Denver number. Post the merger with five associate banks and Bharatiya Mahila Bank, which came into effect on April 1, India’s largest bank may have gained enough muscle mass to wrestle global behemoths, but its increased sway on the rural market takes it much closer to what India’s biggest lender stands for: ‘The banker to every Indian’. With the help of its associate banks, SBI is aggressively building up its rural network. “In cities, we are already a preferred bank, thanks to our pricing and attractive products. Now, efforts are on to expand our reach in the rural areas,” says Arundhati Bhattacharya, Chairman of SBI. For the first woman chairman of the 211-year-old bank, ‘go rural’ is as important as the bank’s digital push.

She has already built the reputation and image as a silent performer. With the merger, the nimble footed public sector lender has entered the league of top 50 global banks with a balance sheet size of Rs.33 lakh crore, with 24,017 branches and 59,263 ATMs, serving more than 42 crore customers. And it straddles all segments of the economy, with the aggression that is commonly associated with private and foreign banks. With the opening of 386 new branches during last fiscal, SBI’s network has reached 17,170, as of March 2017, of which 64 per cent are in rural and semi-urban areas, says SBI’s annual report for 2016-17. “With an aim for improved customer service, better crowd management, reduction in wait times and overall reduction in the service time (processing time), we have rolled out Customer Experience Excellence Project (CEEP), which has moved at an accelerated pace in 2016-17. We have rolled out 1,519 branches under CEEP during last fiscal, and the total number of branches under CEEP stands at 4,525 as of March 2017,” says the chairman in the annual report. In order to expand its reach to the rural populace and enable the benefits of digitisation to the masses, SBI has rolled out an exclusive offering in ‘assisted’ mode — State Bank MobiCash.

The wallet was launched in partnership with BSNL and is also available for basic/ feature phone users along with smartphone users. It aims to bridge the gap between the urban and rural market and fulfil aspirations across all sections of the society, thus helping India move towards a cashless society. At a time when the rural market undergoes a paradigm change with structural shifts in the economy, rising non-farm incomes and changing consumption preferences, SBI is actively

doing the role of a grass-roots banker. It has continued to surpass the agri credit flow target set by the government of India, with its disbursement in 2016-17 crossing Rs.1,25,270 crore, 132 per cent more than the target of Rs.95,168 crore. Even during the previous year, SBI recorded 114 per cent growth in disbursement at Rs.1,02,423 crore as against the target of Rs.89,781 crore. During 2016-17, it introduced various technology-based solutions and products such as KCCATM- RuPay Cards to make farmers’ lives easier while improving the operational efficiency for managing agriculture loans. In addition to the products like Asset Backed Agri Loan, and Tatkal Tractor Loan launched earlier, SBI launched new products for financing greenhouse cultivation and solar photovoltaic water pumping systems, among others.

SBI raises RS 15,000 crore via QIP (Jun 09, 2017)

The country’s largest lender SBI on Thursday said it has raised Rs.15,000 crore by selling 52.2 crore shares through qualified institutional placement, the largest share sale in the secondary market by a bank. SBI had opened the share sale through private placement on June 5. In a regulatory filing, the bank said its central board decided to close the issue on Thursday and accorded its consent for the same. The total proceeds of the issue will be used to augment its capital adequacy ratio and for general corporate purposes, in accordance with applicable law, the bank had said earlier.

SBI Seeks Differential Pricing on e-payments (Jun 08, 2017)

The State Bank of India has sought differential pricing on digital transactions from the National Payments Corporation of India citing the large volume it generates. The state-run lender wants to pay lower charges on transactions facilitated by NPCI that include the national financial switch, UPI, IMPS, clearing system, cheque truncation system and the RuPay card transactions. “We believe that SBI must get a discount because the volumes are so high. Even a 10% discount will mean that the bank will save Rs.50-100 crore,” said a senior SBI official.

“So whoever our aggregators are, whether it is NPCI or a telecom operator, we are now negotiating so that we get the volume discount.” An NPCI official said the SBI’s demand is not unfair. “One-third of our business volume comes from the State Bank of India. We do not have a special pricing for them, (but) they have been demanding this,” the NPCI official said.

“Very recently they have renewed their demand that SBI should be viewed differently, as bulk of our revenue comes from them. I don’t think this is an unfair demand.” The official said that while a discount for SBI is still under consideration it has requested SBI to seek better service than lower prices. SBI controls bulk of the payments market, with more than 40% of the debit card market share and 25% of the internet banking

SBI Opens Up its Codes for Hackathon (Jun 08, 2017)

State Bank of India has opened up its application programming interface (API) for a hackathon, Code for Bank, to tap into the larger developer talent pool for new tech innovations. This hackathon, supported by online platform for hackers, HackerEarth, is open to developers and startups from India with the idea of taking the platform to global developers. “Emerging technologies like AI, analytics and machine learning capabilities are reshaping the banking space in India. We cannot lag behind. By opening up APIs, it gives us an opportunity to create services and products that previously could not have been possible,” said SudinBaraokar, Head, Innovation, SBI. The competition has two phases. The first phase invited ideas from applicants wherein, around 3,071participants had registered, out which 603 were women. Currently, 481 ideas are being taken forward for the final rounds.

SBI tries to get closer to farmers (Jun 07, 2017)

State Bank of India (SBI) is trying to disburse much needed agricultural credit. The bank is organising all India farmers meet s at 15,500 rural and semi-urban branches across the country on June 8, 2017. The Bank hopes to reach out to at least 10 lakh farmers through this nation-wide farmers meets on the day. Branches will receive applications for fresh loans as well as for renewal or enhancement of existing loan. With the upcoming kharif season, the bank has instructed all branches to pursue lending to farmers.

Time for second generation reforms to kick in: SBI chief (Jun 07, 2017)

Underscoring that the country’s growth fundamentals continue to remain intact, State Bank of India, in its annual report said, the time is opportune to take a decision on second generation reforms encompassing vital sectors such as banking, bureaucracy, judiciary and industry. “Low inflation, good agriculture growth and declining power shortages are indications towards a bright future... The first generation of reforms has completed 25 years and the law of diminishing returns has now set in preventing a full scale revival,” it said.

FY18 is expected to be challenging, yet more promising than the previous year primarily because the policy environment is now more predictable, said Chairman Arundhati Bhattacharya. Political stability has increased and this will provide the basis for more bold reforms in the next two years, she said in the bank’s annual report. Bhattacharya observed that asset quality pressures remained elevated during FY17 due to tepid growth in the economy and low capex demand. “However, the recent ordinance issued by the government to resolve the non-performing asset (NPA) issue by vesting RBI with greater powers is a welcome move in this direction. I expect these issues to be resolved in the next two years, signs of which are evident at this stage,” she said.

The promulgation of the Banking Regulation (Amendment) Ordinance, 2017 enables the RBI to direct banking companies to resolve specific stressed assets by initiating insolvency resolution process, where required The RBI has also been empowered to appoint or approve for appointment, authorities/ committees to advise banking companies for stressed asset resolution. According to the report, measures such as forensic audit in those accounts where there is lack of cooperation, operationalising the commercial division of High Courts, and implementation of bankruptcy code, among others, are also likely to have a positive impact on the asset quality of the banking system.

Challenges ahead In the coming year, India’s economy will have many challenges to surmount, it said, cautioning that the protectionism of the West may constrain the country’s ability to cater to export markets. The report elaborated that the economy’s employment generating potential needs a further thrust. Doubling of farm incomes to support the aggregate demand needs to be pursued with full sincerity without hurting financial stability. Critical infrastructure such as internet connectivity, regional air connectivity, rail connectivity, water conservation and port connectivity need to be pushed on a war footing.

SBI QIP: A hit without being underpriced (Jun 07, 2017)

Whether government owned banks would garner enough interest in the secondary market has been a recent talking point in the investor community. State Bank of India (SBI), this country's largest, was among the first to announce a plan this year to raise funds — Rs.15,000 crore — through Qualified Institutional Placement (QIP). Pricing is an important aspect for all capital raising. Many QIPs get placed only at a discount to the market price. When bank chief Arundhati Bhattacharya was asked if the money could be raised without compromising on valuation, she confidently said the bank would not take more than a five per cent discount to its market price. Much to even the chairman’s surprise, reports suggest SBI launched its QIP at Rs.287.25, also the closing price of its stock on Monday. It is the largest secondary market issuance so far by any bank. A QIP issue at the market price suggests good demand. Sources in the know say it was subscribed about 1.7 times, garnering Rs.26,000 crore. Of this, around Rs.11,000 is said to be from domestic institutional investors (DIIs).

The rest was from foreign institutional investors (FIIs). “Some of the top FIIs such as Franklin Templeton, Temasek and a Canadian pension fund have shown strong interest. Among domestic institutions, the issue was well received by large insurance companies such as ICICI Prudential, HDFC Life and GIC Re,” according to sources. Life Insurance Corporation (LIC), largest in the segment, is also said to have subscribed for shares worth Rs.5,800 crore in the QIP. About 90 per cent of the transaction was allocated to international long-only funds and domestic institutions. One of the managers to the issue said this was the country’s largest QIP issuance. After this issue, SBI’s capital adequacy gains more comfort. It has increased from 13.11 per cent to 14.5 per cent, eliminating the need to raise money in the next two years. With this, the overhang of fund raising is also behind it; analysts say the focus would shift back to fundamentals.

“SBI is among the few public sector banks which is giving stiff competition to private ones and doesn’t have the leadership issues faced by its peers,” says Asutosh Kumar Misra of Reliance Securities. Nikhil Khandelwal, managing director of broking house Systematix, adds the market thesis is that SBI, followed by Punjab National Bank, should lead a revival in credit growth. Which is why State Bank of India is valued differently. “The belief is also that the asset quality cycle is nearing its end, and while the provisioning might pinch the financials, its impact will be much lower than what it was in FY17,” he adds. This is why he thinks SBI at current levels is an attractive purchase, particularly for institutional investors. Analysts at Citi say its absorption of associate banks should lead to cost synergies, especially on employee expenses. “The merger has given SBI significant scale. This should enable SBI to further gain market share in loans and deposits,” they add. Given the positives, the consensus 12-month target price for the scrip is Rs.331.71, an upside from now of 15.5 per cent.

SBI's biggest QIP receives bids worth Rs.22,000 crs (Jun 07, 2017)

STATE BANK OF INDIA (SBI) is understood to have received bids worth around Rs.22,000 crore in response to the placement of shares for around Rs.15,000 crore at a floor price of Rs.287.58 apiece.

“The response has been very good and most of the bids came in at the top end of the price range,” said an investment banker. Investment bankers said among those who participated were Fidelity, Blackrock, Temasek, Capital, Wellington and Life Insurance Corporation. SBI will finalise the pricing later this week and will offer a discount of anywhere between 0% and 4% to the closing price on Monday. The bank is expected to offer as many as 544 million shares. In January 2014, SBI had raised Rs 8,032 crore via a placement of shares.

At the time, Life Insurance Corporation of India (LIC) had picked up a big chunk - around 41% - of the total shares sold. The shares were priced at Rs151.76 per share and the bank had been hoping to raise Rs.9,600 crore. The SBI stock closed at Rs.287.3 5 on Monday, ahead of the announcement. At this price, the stock - including subsidiaries -trades at 1.1 times price to adjusted book for 2017-18. On a stand-alone basis, the stock trades at 1.3 times. SBI shares had hit a 52-week high of Rs 315 in May this year after touching a 52-week low of Rs.197.1 in June 2016.

The merger of SBI and its five associate banks has resulted in a consolidated balance sheet of Rs.35 lakh crore, making it one of the top 50 banks in the world. At the end of March 2017, the size of SBI’s stand-alone balance sheet was Rs.27 lakh crore. On a standalone basis, SBI’s FY17 net profit rose 5.36% to Rs.10,484 crore but net profit (after minority interest) of the SBI Group declined to Rs.241 crore in FY17, from Rs.12,225 crore in the previous year. As at the end of the March quarter of FY17, SBI’s total capital adequacy ratio stood at 13.11%, of which tier-I capital adequacy ratio was 10.35%

Earlier last month, private sector lender Kotak Mahindra Bank had raised Rs.5,803 crore through a QIP selling 6.2 crore shares at Rs.9 36 crore per share. At an event in March, SBI chairman Arundhati Bhattacharya had observed that during the earlier QIP, the merchant bankers had been optimistic initially. However, on the night before the issue was to close, she had been informed the book was about to fall-off. “Early morning I got on to the phone and spoke to people. Somehow by the evening we had managed to stitch together at least 80% subscription and closed the issue,” Bhattacharya had said