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In October, mutual funds (MFs) made net purchases exceeding Rs 92,000 crore in local equities, focusing on top Nifty stocks, while foreign institutional investors (FIIs) sold over Rs 94,000 crore. Despite a market correction with major indices dropping over 7%, MFs heavily invested in Mahindra & Mahindra, HDFC Bank, Axis Bank, ICICI Bank, and SBI, with Mahindra & Mahindra attracting Rs 6,840 crore despite a 12% decline in its stock price. HDFC Bank saw inflows of Rs 5,756 crore, while Axis Bank and ICICI Bank received Rs 4,115 crore and Rs 3,897 crore, respectively.
State Bank of India (SBI) plans to secure up to $1.25 billion, marking the largest dollar-denominated loan from India's financial sector in 2024. The five-year loan, arranged by CTBC Bank, HSBC Holdings Plc, and Taipei Fubon Bank, will have an interest margin of 92.5 basis points over the risk-free Secured Overnight Financing Rate. The funds will be utilized for general corporate purposes through SBI's branch at the Gujarat International Finance Tec-City.
The Reserve Bank of India has identified State Bank of India, HDFC Bank, and ICICI Bank as Domestic Systemically Important Banks (D-SIBs). SBI will face an additional Common Equity Tier 1 requirement of 0.80% of Risk Weighted Assets, while HDFC Bank and ICICI Bank will have requirements of 0.40% and 0.20%, respectively. The higher surcharges for SBI and HDFC Bank will take effect from April 1, 2025, with interim rates of 0.60% and 0.20% applicable until then.
State Bank of India reported a consolidated profit of Rs 20,219.62 crore for Q2FY25, marking a 23.4% increase year-on-year, with standalone profit rising 27.9% to Rs 18,331.44 crore. The bank's gross NPA ratio improved to 2.13%, while credit growth reached 14.93% YoY, driven by corporate and agricultural advances. Meanwhile, Tata Steel's EBITDA rose to Rs 55 billion, bolstered by strong Indian operations, despite widening losses in Europe.
State Bank of India reported a second-quarter profit that exceeded analyst expectations, driven by robust credit growth and reduced provisions for loan losses. This performance highlights the bank's strong lending capabilities in a competitive market.
Gautam Chhaochharia, Head of Global Markets at UBS, emphasizes that local policy decisions will be the primary drivers of Indian markets, overshadowing global influences like Trump's policies. He expresses cautious optimism about economic growth and earnings recovery, while highlighting the need for policy support and potential rate cuts in the coming months. Chhaochharia notes that consumer sectors linked to rural recovery are better positioned for growth amidst current valuation concerns.
SBI economists project a slowdown in Q2 real GDP growth to 6.5%, following a 6.7% expansion in the previous quarter, the lowest in 15 quarters. They anticipate FY25 growth to be closer to 7%, citing pressures on the domestic economy and potential dips in agriculture, industry, and services.
State Bank of India is set to report its Q2FY25 earnings on November 8, 2024, with expectations of a robust performance driven by strong loan and deposit growth. Analysts predict a 10% year-on-year increase in net interest income to Rs 43,464 crore and an 18% rise in profit to Rs 16,953 crore compared to the previous quarter.
Partha Pratim Sengupta has been appointed as the new Managing Director and CEO of Bandhan Bank, following approval from the Reserve Bank of India. He is set to assume his role by November 10 for a three-year term, bringing extensive experience from his previous positions, including Deputy Managing Director at State Bank of India and MD & CEO of Indian Overseas Bank from 2020 to 2022.
The State Bank of India’s chairman aims to target the unbanked population as part of the bank's expansion strategy amid fierce competition for deposits. Significant investments in digitalization have enabled the bank to efficiently reach underserved areas, adding 50,000 to 60,000 savings accounts daily through its mobile app. Plans to open new branches in unserved regions are also underway.
State Bank of India
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The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
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