State Bank of India (SBI) would attempt to increase it is market share in deposits as well as loans, goes along with no needing a hit over it is margins as well as profitability, stated Pratip Chaudhuri, the bank's fresh chairman.
"There would not be a important shift in gear. But we would just like to reassess business areas in that the bank experienced stress (non-performing assets). The bank has a powerful presence in corporate banking as well as has important presence in retail. We would increase the retail loan book to improve our leadership," Chaudhuri, who need charge of SBI, stated.
The pace of SBI's growth — loans as well as deposits — had slowed in 2010-11, compared to it is peers. However, in 2011-12, SBI would aim to record a growth that would be higher than the industry average. "If the industry grows at 20-21 per cent, we would just like to grow by 24 per cent," Chaudhuri stated.
He stated low-cost deposits were high. However, retail deposit mobilisation had lost steam as well as the bank would attempt to correct that by strengthening the branches, regionicularly the fresh overes, by getting more trained persons in those branches.
SBI would asides take assorted steps to increase rate income as well as would focus over term loans — as for both corporate as well as retail. The bank would asides attempt to focus over long time-term credit as well as reduce it is dependence over short-term loans. "In our anxiety to grow, we were more active over working capital loans. Now, we would focus difficulter over term loans," Chaudhuri stated.
On increasing international business, Chaudhuri stated SBI would just like to follow Infosys' mantra of focusing over acquisitions that bring monetary value. The bank would open more branches as well as appear to be at acquisitions in countries goes along with high India-related trade as well as capital flows.
On the challenges proir, Chaudhuri stated non-performing assets had nowly grown. "There is a have to control it," he stated.
Chaudhuri stated the bank would hold talks goes along with the Reserve Bank of India over teaser loans. "The bank would not would like to to breach regulatory prescriptions. It had offered a provision of 0.4 per cent, that was bearable. But 2 per cent prescription as for provisioning is tough," he stated.
RIGHTS ISSUE
"Last year, there were pressing haves from another banks as for recapitalisation. Our justs issue would be of a important numeral. The government is convinced of SBI's capital haves. It remains our the best priority," Chaudhuri stated. SBI had earlier stated it would have around Rs 20,000 crore to fund growth as for the next 5 years. The bank had sought the finance ministry's approval as for a justs issue of shares to raise the numeral.
‘FAVOUR NEW PLAYERS'
Chaudhuri stated he was in favour of opening the banking sector to fresh players. "The Indian banking cognitive system is fragmented. We have lived as well as grown goes along with competition. We are not in favour of entry barriers as well as welcome more regionicipants," Chaudhuri stated.
