SBT, SBI General Insurance ties up for affordable health plan

http://www.thehindubusinessline.com/industry-and-economy/banking/sbt-sbi-general-insurance-ties-up-for-affordable-health-plan/article5401366.ece

State Bank of Travancore (SBT) and SBI General Insurance today jointly launched an affordable health insurance plan for SBT customers.

“SBI General Insurance and SBT today jointly announced the launch of SBI General’s Group Health Insurance Policy exclusively for SBT account holders and their families,” SBI General said in a release.

In terms of affordability, for a 35-year-old adult the policy will cost Rs 1,300 per year to have an Rs 100,000 cover which means Rs 3.56 per day.

The policy has benefits such as multiple coverage options, no pre—policy medical test up to age of 65 years for people with no medical history, 142 day care procedures covered, guaranteed renewal upon option.

Besides, it also offers coverage of pre and post—hospitalisation expenses transparent claim process and cashless treatment across over 3,000 hospitals in the network.

India has one of the highest out—of—pocket health care expenditures in the world. One of the major reasons that India’s poor incur debt is the cost of health, Bhaskar J Sarma, MD & CEO of SBI General Insurance said.

“What we really need is a health insurance which is priced just right and affordable for the vast majority of people. Health insurance that is affordable is the key for penetrating further in semi—urban and rural areas.

SBI General’s Health Insurance Policy is designed to protect the happiness of the family with its affordable premium,” Sarma said.

SBT tells customers to ‘cover’ positions in forex market

http://www.thehindubusinessline.com/industry-and-economy/banking/sbt-tells-customers-to-cover-positions-in-forex-market/article4843431.ece

State Bank of Travancore (SBT) has launched a series of meetings of exporters and importers aimed at giving them a lowdown on what is happening in the economy and foreign exchange market.

The first of the meetings was held in Kochi where 60 customers of the bank participated, S. Vasudevan, general manager of the SBT Network in the region, told Business Line.

RUPEE FALL

The bank had lined up a number of experts dealing in forex market and related fields to update the audience on what had triggered the precipitous fall of the rupee in recent times, among other things.

“Ensure you are effectively covered and at no cost should any position kept open for long” was the advice tendered to anxious customers, Vasudevan said.

Foreign Institutional Investors have a right to pull back their money from India in the context of signals from the US Federal Reserve that it might go slow with its loose money policy.

This had driven up demand for dollars overnight, pummelling the value of the rupee in the bargain. But experts handling the session felt that it was a short-term phenomenon only.

‘REBOUND’ EFFECT

They felt that the rupee would start benefiting from the ‘rebound’ effect when markets open on Monday. Promised support from Reserve Bank of India and the Centre also will lend valuable support.

SBT had a turnover of Rs 24,026 crore in foreign exchange in 2012-13. It proposes to organise similar meets at potential business centres across country as part of a strategy to expand forex business, Vasudevan said.

Leena Nair, chairperson, Marine Products Export Development Authority, inaugurated the proceedings, which included a general debate and question and answer session.

SPECIAL SESSIONS

Special sessions were held on the nuances of Foreign Exchange Management Act and regulation of foreign trade; risk to exports; policies of Export Credit Guarantee Corporation; and SBT products in foreign trade.

S. Vasudevan delivered the welcome speech while E. K. Harikumar, chief general manager (commercial banking), SBT, presided over. Chandrasekharan, general manager (treasury) spoke on the occasion.

Among bank officials who handled various sessions were Latha Subramaniam from forex treasury, Mumbai; S. Harikrishnan, general manager; K.S. Narayanan, assistant general manager; and R. Mahalingam, senior manager, Export Credit Guarantee Corporation.

Mayadevi P., deputy general manager of Ernakulam zone of SBT, proposed vote of thanks.

Don’t lend short for long-drawn projects, SBI chief tells associate banks

http://www.thehindubusinessline.com/industry-and-economy/banking/dont-lend-short-for-longdrawn-projects-sbi-chief-tells-associate-banks/article4766140.ece

State Bank of India (SBI) Chairman Pratip Chaudhury has cautioned associate banks against committing short-term funds for long-gestation projects.

He said this with specific reference to exposure to a series of big-ticket infrastructure projects in Kerala, where State Bank of Travancore (SBT), an associate bank, is headquartered.

BIG PROJECTS

Chaudhuri was here to attend the annual general meeting of the associate bank and also a corporate social responsibility event that coincided with it.

Among projects announced in the State are Metro Rail in Kochi; monorail in Thiruvananthapuram and Kozhikode; a high-speed rail corridor; the Vizhinjam container terminal and the Kannur international airport.

By no chance should short-term funds be advanced to these projects since it could lead to a mismatch of deposit base versus long-term advances committed.

Chaudhury advised banks to examine how and when revenue stream from a project starts kicking in. It is easy to take a decision on projects, for instance Metro or monorail, with an assured revenue stream.

NOT SAME

It would not be the case with projects such as a flyover or a bridge, which propped up the contentious issue of toll as a means of realising costs over a period of time.

Chaudhury said parent SBI was sitting on a cash surplus of Rs 40,000 crore. It is willing to fund projects being executed by reputed contractors known for speed of implementation.

Separately, he reiterated his demand that all loans, including home and vehicle, be brought under a single regulator.

Why should there be a separate regulation for commercial banks and housing finance companies when they lend funds to the same sector, he wondered.

PAT FOR SBT

He complimented SBT for maintaining a good credit-to-deposit ratio of 69 per cent, indicating the extent of credit sanctioned within the home State relative to the deposit base.

This should help remove the misconception that the bank is taking away funds outside for investing in lucrative projects in other States.

Chaudhury said the associate bank had revealed solid financial position with a net profit of Rs 615 crore during 2012-13, backed up with a deposit base of Rs 85,000 crore and advances of Rs 67,000 crore.

SBT will continue to lead and syndicate finance for major Kerala projects: MD

http://www.thehindubusinessline.com/industry-and-economy/banking/sbt-will-continue-to-lead-and-syndicate-finance-for-major-kerala-projects-md/article4595110.ece

State Bank of Travancore (SBT) hopes to become the bank which will lead and syndicate, and make certain funds for major infrastructure projects in Kerala, says P. Nanda Kumaran, Managing Director.

“May be our visibility has not been good. But that’s partly because of customer confidentiality clause applicable from case to case,” he toldBusiness Line here.

BIG PROJECTS

“So at times we won’t able to announce probably what we are doing at a given time,” he said while referring to the bank’s willingness to stay invested in the State.

“But let me tell you, with every project is happening in Kerala, we’ve been there as one of the major contributors,” he added.

Vizhinjam international seaport and transhipment terminal project is one. The bank has also a commitment to the Kannur airport and the Kochi Metro. In fact, it was the first bank to commit money for the latter.

SmartCity Kochi is another. The bank is also involved in the expansion of the Cochin International Airport.

RISK APPETITE

“We’ll get involved in any good project that is coming up in this manner,” Nanda Kumaran said.

As a banker, he would look to meeting best opportunities where the risk allows him to derive maximum benefit.

While doing so, the bank would like to get decoupled from the bad effects of a connected globe but would as well like to gain from the good.

“When we say we’re growing as among the top 10 economies of the world, it’s about how you would globalise more and how you’re going to derive more and more synergy, benefits, capabilities and growth and wealth from that,” he said.

SIGNAL ROLE

Explaining the signal role that banks play in the economy, he said banks are the single most effective tool of transmission of economic policies and decisions.

“We’re the transmission point, we’re the disintermediation point, we’re the intermediation point and we’re also the funding and recovery point.

So whatever be the economic decisions and policy-making, they are felt more acutely in banking than anywhere else.”

Banks need to globalise to derive comparative advantage as well as competitive advantage. They must imbibe best practices in manufacturing, services, management, corporate governance, accounts etc.

CAPITAL ADEQUACY

“As a country, we’re moving faster towards Basel 3 prescriptions on regulation, supervision and risk management. There’s already a lot of preparedness happening in the banking system.”

It’s a positive sign that India is becoming a more mature place to do business than we would have given credit to ourselves.

“I look at it with a sense of maturity with what’s happening on this front. It helps us to plan better; it also gives us confidence and self-belief, which is very important,” Nanda Kumaran said.

SBT net grows 31% on higher interest income

http://www.thehindubusinessline.com/industry-and-economy/banking/sbt-net-grows-31-on-higher-interest-income/article4354258.ece

State Bank of Travancore (SBT) posted a net profit of Rs 132 crore in the third quarter of the current fiscal.

This represented a 31 per cent jump over the net profit of Rs 101 crore in the corresponding quarter of the previous year.

Speaking to Business Line, P. Nandakumaran, Managing Director, SBT, attributed the good performance to an overall improvement in the operational scheme of things. It also marked reversal of a trend in which the cost of deposits had been weighing down the overall performance. The bank had managed the challenge on this front after NRI deposits, which accounted for 24 per cent, were set free last year. Adequate provisioning has been made not only for non-performing assets (Rs 245 crore this quarter) but also for restructured assets.

“Growth in advances resulting in a higher net interest income also aided in achieving a growth in the net profit,” Nandakumaran said.

The net interest income moved up from Rs 1,325 crore to Rs 1,511 crore, a year-on-year growth of 14.04 per cent.

Net interest margin (NIM) stood at 2.50 per cent (2.63 per cent).

The net operating income rose from Rs 1,799 crore to Rs 1,975 crore, a growth of 9.75 per cent.

The capital to risk weighted assets ratio (CRAR) stood at 11.40 per cent (under Basel II framework) against a regulatory minimum of nine per cent. Gross net performing assets (NPAs) grew to 3.04 per cent from 2.82 per cent while net NPAs stood at 1.83 per cent against 1.64 per cent.

Total business crossed Rs 1.45 lakh-crore mark and stood at Rs 1.46 lakh crore as at the end of December, 2012.

SBT net rises 16% to Rs 136 cr

http://www.thehindubusinessline.com/industry-and-economy/banking/sbt-net-rises-16-to-rs-136-cr/article4054368.ece

State Bank of Travancore has reported a 16 per cent increase in net profit for the July-September quarter at Rs 136 crore.

The Kerala-based bank, which is an associate of State Bank of India, had posted a net profit of Rs 117 crore in the year-ago quarter.

Net Interest Income (the difference between interest earned and expended) rose 20 per cent at Rs 503 crore from Rs 418 crore.

Net Interest Margin stood at 2.50 per cent against 2.63 per cent in September 2011.

The percentage of net non-performing assets (NPAs) decreased marginally to 1.74 per cent from 1.77 per cent in Q2 FY’12.

Gross NPAs stood at 2.98 per cent (2.84 per cent in September 2011).

Capital adequacy ratio increased to 12.4 per cent (12.1 per cent).

The shares of the bank ended higher by 0.78 per cent at Rs 515 on the Bombay Stock Exchange.

SBT to hire specialist cadre officers

http://www.thehindubusinessline.com/industry-and-economy/banking/sbt-to-hire-specialist-cadre-officers/article4005924.ece

State Bank of Travancore (SBT) has invited applications for appointment of 37 vacancies under specialist cadre officers.

Listed vacancies are those of deputy managers and assistant managers in systems, civil engineering, electrical engineering, official languages, law and security.

A candidate can apply for only one post.

Details of essential qualifications, minimum and maximum age as on October 1, 2012, approximate monthly emoluments, etc are furnished in the State Bank of India central recruitment and promotion department advertisement No. CRPD/SCO/2012-13/02 dated September 28, 2012.

Online registration of applications has been started from October 8, 2012, and the last date of registration is October 28.

A written test will be conducted on December 2, 2012. Candidates can visit SBI websites www.statebankofindia.com or www.sbi.co.in for online registration. The advertisement is also available in www.statebankoftravancore.com.

SBT cuts lending rate by 25 bps

http://www.thehindubusinessline.com/industry-and-economy/banking/article3965387.ece?homepage=true&ref=wl_home

State Bank of Travancore (SBT) today lowered its benchmark prime lending rate by 0.25 per cent with effect from October 8.

The bank has lowered the BPLR (benchmark prime lending rate) to 15.25 per cent from 15.50 per cent at present, SBT said in a BSE filing.

However, the base rate will remain at 10.50 per cent, same as the existing rate.

The revised rate will be effective from October 8, it said.

Shares of the bank today closed at Rs 533 a piece on the BSE, up 2.05 per cent from the previous close.

Milestone achievement for State Bank of Travancore, says MD

http://www.thehindubusinessline.com/industry-and-economy/banking/article3865614.ece

Hiving off the Office of the General Manager represents a milestone achievement in the growth and reach of State Bank of Travancore (SBT), says P. Nanda Kumaran, Managing Director.

He said this while delivering the presidential address at the launch of the Network 1, the decentralised office of the General Manager, based outside of its headquarters here.

Coming after 67 years of its existence, this represented the coming of age of the bank coinciding as it did with the level of empowerment of the people of its home State.

Nanda Kumaran described the initiative as a new level of employing management control or decontrol, depending on whichever way one might wish to look at it.

It is another way of taking banking services to the grass-roots. More decentralisation of powers eases decision-making and brings to table empowerment of beneficiaries.

While the bank has looked at expanding within the State, it has also realised the need for growing outside of the home base.

The bank is also looking at Chennai as a base for a network under a general manager, Nanda Kumaran said.

Business volumes handled by the newly set up Thiruvananthapuram Network better the total size of the business handled by the bank’s closest competitor, he said.

“The bank now believes it is in a position to bring services closer to its customers. This is just in order for a bank of its size, approaching a business of Rs 1.33 lakh crore.”

This is a humongous amount, and is at least 50 per cent more than the second largest bank, private of public, in the State.

The branch network is also far more extensive than that of its peers, and counts top names in corporates and companies as borrowers.

Trust as addition

Last year, the State Government had decided to enable its employees to draw their salaries from banks.

At least 60 per cent of them chose SBT as their bank, which is indicative of the reliability and trust that people associate with it.

“It is this long tradition of trust that has sustained SBT’s status as the premier bank of the State. This would not have been possible without the commitment, dedication and sense of purpose displayed by the employees of the bank, ’’ he said.

“I salute each and every employee who made this possible,” Nanda Kumaran said.

SBT opens GM-led network office in Thiruvananthapuram

http://www.thehindubusinessline.com/industry-and-economy/banking/article3865571.ece

State Bank of Travancore (SBT) has introduced an internal exercise aimed at administrative restructuring and decentralisation of powers. This would effectively mean the Office of the General Manager moving out from the confines of its headquarters here to the respective areas of business operations.

On Wednesday, the bank opened the first such centre of decentralised operations in the capital city.

It is called the Office of the General Manager (Network-Thiruvananthapuram) or simply Network 1, and is headed by K. N. Murali, General Manager.

The new office will coexist with the business and operational headquarters of the 67-year-old bank situated elsewhere in the city at Poojappura.

Minister for Health and Family Welfare V. S. Sivakumar inaugurated Network 1 at a function held here on Wednesday. Speaking on the occasion, he said that SBT deserved to be congratulated for initiating a move for bringing its network and services still closer to customers.

This signalled how SBT, the only public sector to operate out of the State and always considered as its own, has stuck to its avowed ‘customer first’ principle.

Retaining the trust of people is crucial to any business, be it banking or otherwise. That SBT has been able to do exactly it for such a long time speaks volumes of how it has been able to strike a common chord with customers.

The Minister also lauded the SBT management for initiating a number of socially relevant activities through its community banking outfit.

He recalled how the banking industry has come in for flak in recent times, especially on the education loan front.

“These are issues that deserve close attention and treatment,” the Minister remarked. These are also demanding times which call for more intensive and meaningful social initiatives from responsible corporate citizens such as SBT, he added.

Second network

In his welcome address, K. N. Murali, head of Network 1 of SBT, said that the bank had embarked on a restructuring exercise in its retail banking network.

While Thiruvananthapuram will host Network 1, Ernakulam will progressively become the centre for the second network (tentatively called Network 2).

Network 1 will lord it over 447 branches that would come under its tutelage in Thiruvananthapuram and Kottayam zones within the State as also the Mumbai and Delhi zones elsewhere.

All five districts in the State are expected to migrate to Network 1 in phases, Murali said, which would make for business volumes of Rs 50,000 crore.

SBT reduces FCNR deposit rates

State Bank of Travancore (SBT) has announced a reduction in interest rates for FCNR deposits with effect from August 2.

New rates:

                1<2        2<3 3<4 4<5 5       (period in yrs)

USD 3.05 2.42 3.48 3.63 3.79

GBP 3.49 2.80 3.82 3.92 4.06

EUR 2.90 2.60 3.70 3.86 4.05

State Bank of Travancore - Q1 Results - Profit rises 30%

http://www.thehindubusinessline.com/industry-and-economy/banking/article3708277.ece

State Bank of Travancore has registered a 30 per cent increase in net profit to Rs 181.44 crore in the first quarter of this fiscal compared with Rs 139.25 crore in the corresponding previous-year quarter.

Addressing newspersons here on Tuesday, Mr P. Nanda Kumaran, Managing Director, said that the total business has touched Rs 1,31,131 crore as at end-June 2012. The deposit base grew 14.62 per cent (annualised) to Rs 74,082 crore from Rs 71,470 crore as on March 2012.

The net operating income improved by 10.35 per cent to Rs 669.50 crore, and net interest income by 7.50 per cent to Rs 490.40 crore.

Total non-interest income increased to Rs 179.10 crore, as against Rs 150.51 crore in the corresponding period in the previous year. NRI deposits rose by Rs 2,373 crore during April-June. 

Gross advances rose by 7.25 per cent to Rs 57,049 crore from Rs 56,034 crore as on March 2012. Gross NPAs stood at 2.85 per cent (2.18 per cent in June 2011) and net NPAs, at 1.60 per cent (1.19 per cent).

He said that the bank opened 41 new branches during the financial year, taking the total number of branches to 920. It is now focusing on opening the 1,000th branch in the current year.

Gold loan kiosks have started functioning at many branches. And the gold loan portfolio of the bank, at Rs 7,300 crore, accounts for 14 per cent of the total advances, he said.

SBT drive for SMEs - OTS

http://www.thehindubusinessline.com/industry-and-economy/banking/article3692927.ece

State Bank of Travancore (SBT) has launched a one-time settlement (OTS) campaign for repayment of non-performing accounts in the micro, small and medium enterprises (MSME) segment.

The scheme is applicable to all sub-standard assets (in default for more than 12 months) without collateral backing.

It is also applicable for doubtful or ‘loss assets’ (loss identified but not written off) as on March 31, 2012, as defined in the MSMED (MSME Development) Act 2006.

All MSME borrowers can avail this special opportunity and settle their outstanding with the bank, a bank spokesman said here.

There is also an additional incentive of 15 per cent and 10 per cent discount on the OTS amount arrived for borrowers who make full payment respectively within one month or three months from the date of approval of the OTS.

The last date of receipt of application by branches is August 31. More details can be had from the nearest branch or the MSME department at the SBT head office (phone no: 0471-2353658).