State Bank of India Archives

New FASTag Design Targets Misuse Of Smaller Vehicle Tags…

31 August 2024
by admin

New Delhi: The State Bank of India has introduced a new FASTag design which is aimed at addressing the misuse of smaller vehicle tags on larger vehicles to avoid higher toll charges. This updated FASTag is specifically designed for Vehicle Class-4 (VC-04) which encompasses cars, jeeps and vans, as reported by Economic Times. The new tag has been available since August 30, 2024.

Why Was the New FASTag Design Introduced?

The new FASTag design was introduced to address the issue of incorrect tags being used on higher-class vehicles like trucks. The misuse of VC-04 tags on these larger vehicles has been causing financial losses for toll plazas, the Economic Times quoted SBI as saying. The updated design aims to make it easier to identify vehicle classes, allowing toll staff to quickly address any misclassifications and prevent revenue loss, as per the report.

On August 30, 2024, SBI introduced several new products. Among them is India’s first MTS card, the MTS RuPay NCMC prepaid card. This card offers a convenient offline payment option for various transit services, including metro rails, buses, ferries, tolls, and parking.

SBI also launched the OneView mobile application. This app allows customers to easily manage their NCMC prepaid cards, including topping up, tracking, and overseeing their usage all from one platform.

“The Nation First MTS Card, issued without the need for KYC verification, along with the OneView app, streamlines card management, making it easier for users to top-up without the need to visit metro or bus counters,” said Mahesh Kumar Sharma, Deputy Managing Director of Transaction Banking and New Initiatives at SBI.

Science & Environment

THESE 5 Special FD Schemes With High Interest Rates…

30 August 2024
by admin

New Delhi: The deadline for Special Fixed Deposit (FD) Schemes of several banks –State Bank Of India, IDBI and Indian Bank, Punjab and Sindh Bank will come to an end on September 30. Interested senior citizen investors can put their money in the schemes to earn a higher interest rate on FD policies.

Banks had earlier introduced the scheme for a select period to provide senior citizens and regular customers with a chance to get better returns on their investments. However, Banks later revised the deadlines a few times, considering demand from public.

IDBI Utsav Callable FD (Revised Rates w.e.f. August, 15, 2024)

Validity is up to September 30, 2024. The interest rate structure is as follows:

Interest Rate (% p.a.)
Special Buckets	General/NRE/NRO	Senior Citizens
300 Days	7.05	7.55
375 Days	7.25	7.75
444 Days	7.35	7.85
700 Days	7.20	7.70

Indian Bank Special FD

The Deadline for Indian Bank Special Ind Super 300 Days Fixed Deposit scheme is 30 September 2024. The details of the special FD scheme, interest rates are as follows:

SCHEME	Special Term Deposit Product “IND SUPREME 300 DAYS “ with fixed maturity tenor of 300 days in the form of FD/MMD.
TARGET CUSTOMERS	Individual (singly or jointly) HUF NRI Firm (Proprietorship/Partnership), Company, Association, Society, Club in its name. Religious, Charitable or Educational Institutions. Municipality or Panchayat, Government or Quasi Government Body Any other entity not prohibited by RBI.
DEPOSIT AMOUNT	Minimum Amount Rs. 5000 /- (Five Thousand Only) Maximum Amount Less than Rs.3 Crore* Note :* w.e.f 12.06.24 , Limit of maxmium investement per customer per day stands revised to less than Rs.3 Crore from less than Rs.2 Cr. Bulk deposits of Rs.3 crore & above are not eligible.	Minimum Amount	Rs. 5000 /- (Five Thousand Only)	Maximum Amount	Less than Rs.3 Crore* Note :* w.e.f 12.06.24 , Limit of maxmium investement per customer per day stands revised to less than Rs.3 Crore from less than Rs.2 Cr.
Minimum Amount	Rs. 5000 /- (Five Thousand Only)
Maximum Amount	Less than Rs.3 Crore* Note :* w.e.f 12.06.24 , Limit of maxmium investement per customer per day stands revised to less than Rs.3 Crore from less than Rs.2 Cr.
PERIOD OF DEPOSIT	300 Days
RATE OF INTEREST	7.05 % p.a
ADDITIONAL INTEREST RATE	Senior Citizen: 0.50 % p.a Super Senior Citizen: 0.75 % p.a Staff: 1.00% p.a. Staff Senior Citizen: 1.50% p.a. Staff Super Senior Citizen: 1.75 % p.a (Additional interest offered to Senior Citizens & Staff are not applicable for NRO Deposits)

Punjab and Sind Bank Special FD

Punjab and Sind Bank’s special Fixed Deposit deadline ends on 30 September, 2024. Under the special FD customers get interest rates of up to 7.15% for 333 days.

SBI AMRIT KALASH FD

SBI’s Retail Term Deposit ‘AMRIT KALASH’ scheme of 400 days tenor offers @7.10% p.a interest. SBI AMRIT KALASH FD is available up to 30 September 2024. Eligible Deposits are Domestic Retail Term Deposits including NRI Rupee Term Deposits (< Rs 2 crore); ii) New and Renewal Deposits and iii) Term Deposit and Special Term Deposit only. Interest rate is 7.10%. Senior Citizens, Staff and Staff Pensioners are eligible for additional interest rate applicable to them.

SBI Deposit Scheme “SBI WECARE’

SBI’s Deposit Scheme “SBI WECARE’ is valid till 30 September 2024. The Scheme is available on fresh deposit and renewal of maturing deposits. SBI Wecare Senior Citizen FD Scheme will fetch interest rate of 7.50 percent. Senior Citizen will get additional premium of 30 bps (over and above existing premium of 50 bps) over card rate for Public i.e. 80 bps over card rate for Public.

Science & Environment

Decline In Bank Deposits Also Because Of Non-uniform Tax…

19 August 2024
by admin

New Delhi: The State Bank of India (SBI) in its latest report has asked for tax reforms after concerns were flagged over the recent decline in bank deposits. The report says tax Reforms for Deposits can accentuate the banking system’s stability and resilience to the next level.

SBI attributed the fall in deposits to the varied rates of return offered by different investment options for similar time frames and different tax rates on returns on deposits.

The SBI report said that “Tax treatment of bank and non-bank channels are non-uniform, even as bank deposits have a wider and denser pass-through effect across the populace sensitivity of Deposits on Tax is as much as 7 per cent”

The report noted that a bank deposit of Rs 10 lac in a Savings Bank (SB) account at an investment return of 3 per cent would generate Rs 30,000 in returns and after accounting for taxes and exemptions, the net return would be Rs 16,000.

The report adds that the net returns vary significantly if deposits are made in different instruments like term deposits, short and long-term investments in debt funds, liquid funds or bonds. The tax rates on these deposits also favour saving banks or term deposits.

The report illustrates a term deposit of up to one year with the same principal amount of Rs 10 lac at a yield of 6.25 per cent would result in a net return of Rs 50,000 after taxes. But for term deposits exceeding one year the interest rate is higher and with an interest rate of 7.25 per cent, the gross return would be Rs 72,500. After taxes, the net return would be Rs 58,000.

The data highlights that similar type of investments for the same period generates significantly different returns because of different tax treatment by the government.

Similar variations are observed in other investment plans as well. For instance, investments in equity and mutual funds with a 2 per cent dividend income of Rs 10,00,000 generate Rs 20,000, which after taxes the net return is Rs 16,000.

However, Short-term investments of less than one year in equity and mutual funds, offering an 11 per cent return generate Rs 1,10,000, with a net return of Rs 88,000 after taxes.

This investment if made in Long-term investments of more than one year the return increases to 15% on Rs 10,00,000 and generates Rs 1,50,000 annually. With a lower tax bracket of 12.5 per cent tax on long-term investments and applicable exemptions, the net return is Rs 1,43,750.

These variations in returns across different deposits and investment options highlight the complexity and thus investors are choosing the higher return options over the bank deposits which in turn poses a threat to the deposit growth in the banking sector.

Science & Environment

Karnataka Opens Front Against SBI, PNB; Halts Transactions

14 August 2024
by admin

New Delhi: The Karnataka government has taken a significant step by suspending all transactions with the State Bank of India (SBI) and Punjab National Bank (PNB). In an order approved by Chief Minister Siddaramaiah, the state has instructed all departments to close their accounts with these banks and promptly recover their deposits.

Opposition-ruled states like West Bengal and Karnataka have time and again attacked the Finance Ministry and the Central government accusing the Union of not paying their GST dues. However, the finance ministry has refuted the allegation every time. The transaction ban on central banks comes amid this ongoing tussle.

The order also specifies that no further deposits should be made into SBI or PNB. Additionally, the directive extends to public enterprises, corporations, local bodies, universities, and other institutions, instructing them to follow the same guidelines.

The directive follows allegations of misuse of government funds deposited in these banks. Despite prior warnings and communications, the issue remained unresolved, leading the government to take this decisive action.

Science & Environment

SBI Records Net Profit Of Rs 17,035 Cr With…

3 August 2024
by admin

New Delhi: The State Bank of India (SBI) has announced its financial results for the first quarter of the fiscal year 2024-25 (Q1FY25), with a net profit of Rs 17,035 crores for Q1FY25, marking a year-on-year (YoY) growth of 0.89 per cent.

The operating profit for the quarter saw a more significant rise, increasing by 4.55 per cent YoY to Rs 26,449 crores. The bank’s Return on Assets (ROA) and Return on Equity (ROE) stood at 1.10 per cent and 20.98 per cent respectively, underscoring the bank’s efficient management and profitable operations.

The bank’s Net Interest Income (NII) for Q1FY25 rose by 5.71 per cent YoY, reflecting improved interest earnings. The Whole Bank Net Interest Margin (NIM) was recorded at 3.22 per cent, with the Domestic NIM slightly higher at 3.35 per cent. These figures indicate strong interest income relative to the bank’s interest-earning assets, showcasing SBI’s effective interest rate management.

SBI’s credit growth remained robust at 15.39 per cent YoY. Domestic Advances, a key component of this growth, expanded by 15.55 per cent YoY, driven primarily by Small and Medium Enterprise (SME) Advances, which surged by 19.87 per cent YoY.

Agricultural Advances also showed a healthy increase of 17.06 per cent YoY. Additionally, Retail Personal Advances and Corporate loans registered YoY growths of 13.60 per cent and 15.92 per cent respectively. The bank’s foreign offices also contributed to this positive trend, with their advances growing by 14.41 per cent YoY.

Whole Bank Deposits experienced an 8.18 per cent YoY increase, with CASA Deposits growing by 2.59 per cent YoY, resulting in a CASA ratio of 40.70 per cent as of June 30, 2024. This indicates a stable and growing deposit base, which is essential for the bank’s funding and liquidity.

The bank’s asset quality showed significant improvement, with the Gross Non-Performing Assets (NPA) ratio declining by 55 basis points (bps) YoY to 2.21 per cent. The Net NPA ratio also improved, dropping by 14 bps YoY to 0.57 per cent. The Provision Coverage Ratio (PCR), including advances under collection accounts (AUCA), stood at an impressive 91.76 per cent, with the overall PCR at 74.41 per cent.

Furthermore, the Slippage Ratio for Q1FY25 improved by 10 bps YoY to 0.84 per cent, and the Credit Cost for the quarter was reduced to 0.48 per cent. These improvements reflect SBI’s stringent risk management practices and effective recovery mechanisms.

SBI’s Capital Adequacy Ratio (CAR) as of the end of Q1FY25 was 13.86 per cent, indicating a strong capital position and the bank’s readiness to meet regulatory requirements while supporting future growth.

Science & Environment

SBI To Monetise Subsidiaries After Scaling Up Their Businesses:…

16 June 2024
by admin

New Delhi: SBI Chairman Dinesh Kumar Khara has said the lender would wait for its subsidiaries like SBI General Insurance and SBI Payment to further scale up their operations before monetising them. Scaling up of their operation will increase valuation and ensure better returns for the parent State Bank of India (SBI).

When it comes to subsidiaries, their monetisation would be through the capital market, he told PTI in an interview. “The subsidiaries, which would be eligible for this kind of route, would be essentially our SBI General and may be at some stage, SBI Payment Services, but as of now, we don’t have any such plan,” he said. (Also Read: IRDAI Introduces Higher Surrender Payouts On Early Exit From Life Insurance Policies)

“Maybe, we would like to scale them up a little more, and then we will think in terms of going to the capital market for monetising our holding in these companies. But not in the current financial year,” he added. During the year ended on March 31, 2024, the bank infused additional capital of Rs 489.67 crore in SBI General Insurance Company Ltd. The company has also allotted ESOP to employees and consequently, the bank’s stake has decreased from 69.95 per cent to 69.11 per cent. (Also Read: IRDAI Introduces Higher Surrender Payouts On Early Exit From Life Insurance Policies)

SBI General Insurance reported a 30.4 per cent rise in net profit to Rs 240 crore for the financial year ended March 2024. The non-life subsidiary of State Bank of India had recorded a net profit of Rs 184 crore in the previous financial year.

SBI Payment Services Pvt Ltd, which is in the Merchant Acquiring Business, is 74 per cent owned by SBI, and the rest with Hitachi Payment Services. SBI Payments is one of the largest acquirers in the country, with more than 33.10 lakh Merchant Payment Acceptance Touch Points as of March 31, 2024, including 13.67 lakh POS machines, deployed across geographies.

However, the company’s net profit declined to Rs 144.36 crore for the year ended March 2024 against Rs 159.34 crore in the previous year. Khara also said there is a growing demand for credit from the corporate sector, and loans worth Rs 5 trillion are in the pipeline. Unlike the past few years, when corporates had sufficient cash surplus on their balance sheet, they have started looking for credit to fund working capital requirements and capacity expansion, he said.

“Now, we have come to a stage where they (corporates) have started approaching banks for augmenting their capacity or for working capital purposes. Of course, this I can say with confidence because when we look at our unavailed term loan percentage, it has come down from 25 per cent to 18 per cent, and when we see the working capital utilisation, even that has improved,” he said.

So, he said, all these are confirming that private sector opportunities are going to be there and SBI is in a position to create value for the sector. At the same time, he said, “When we look at our pipeline for the new proposals, that is also quite healthy, somewhere around Rs 5 trillion or so”.

Tag: <span>State Bank of India</span>

New FASTag Design Targets Misuse Of Smaller Vehicle Tags…

Why Was the New FASTag Design Introduced?

THESE 5 Special FD Schemes With High Interest Rates…

Decline In Bank Deposits Also Because Of Non-uniform Tax…

Karnataka Opens Front Against SBI, PNB; Halts Transactions

SBI Records Net Profit Of Rs 17,035 Cr With…

SBI To Monetise Subsidiaries After Scaling Up Their Businesses:…