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Dinesh Khara SBI Chairman

Govt Extends Tenure Of SBI Chairman Until August 2024

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Dinesh Khara, who was due to retire later this week, will stay on till he turns 63 – the currently stipulated age of retirement for the SBI chairperson, the order said

 

India has extended the tenure of the chairman of the State Bank of India (SBI), the country’s largest lender, until August next year, a government order said on Thursday.

Dinesh Khara, who was due to retire later this week, will stay on till he turns 63 – the currently stipulated age of retirement for the SBI chairperson, the order said.

Khara was appointed SBI’s chairman on 7 October 2020, for three years.

The government has also extended the tenure of Ashwini Kumar Tewari as the managing director of the state-run lender for two years starting 27 January 2024, as per the order.

Separately, the Indian government is also considering a proposal to raise the age limit for the chairman of SBI by two years to 65 and is considering extending the age limit of managing directors of other state-owned banks to 62 years from 60, the sources said.

SBI General Insurance appoints Jitendra Attra as its new CFO

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Jitendra Attra has been appointed as the new Chief Financial Officer (CFO) of SBI General Insurance with immediate effect. Prior to this stint, he worked at Zuno General Insurance as CFO and Executive Vice President. Additionally, he has experience working for organisations like Deloitte Haskins & Sells, SBI Life Insurance, ICICI Prudential Life Insurance, and Munich Re.
Rikhil Shah, who joined Bharti AXA Life Insurance, will be replaced by Attra. Attra’s responsibilities in this new position will include overseeing the company’s finances, developing and enforcing policies, establishing internal controls, and managing accounting, taxation, budgeting and financial planning, MIS, and capital planning.
SBI General Insurance was established in 2009. The company’s presence has expanded to 141 branches across India, with a vast customer base of over 34 crore.

SBI General Insurance CFO

CFO Plays Multiple Roles Beyond Finance Sector: CFO, SBI General Insurance

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Considering the current inflationary situation that is existing globally, the investments have gone down that has impacted a lot of economies, according to the media reports. It is vital for the management and CFOs to know about the working-capital requirements to withstand recession as controlling the cash outflow is important and becomes even more essential during hard times like a global slowdown, said Rikhil Shah

A CFO (Chief Financial Officer) comes with a deep understanding of all aspects in an organization and not limited to finance, says Rikhil Shah, Chief Finance Officer and HR Head, SBI General Insurance.

The roles, opportunities and trends in CFO Community have been evolving since recent past. Considering the current inflationary situation that is existing globally, the investments have gone down that has impacted a lot of economies, according to the media reports.

While explaining about growth trajectory in the CFO community, Shah answered a few questions to BW Businessworld during an interview.

In what ways have the role and duties of CFO changed in recent times?

Over the years, the role of a CFO has seen a strategic shift. CFOs traditionally used to be number crunchers who worked silently behind the scenes. Today, however, the role has undergone a colossal paradigm change. A CFO comes with a deep understanding of all aspects of an organisation, not limited to finance or aspects such as capital allocation, business agility and resilience, mitigating operational risks, but across a wide spectrum including supply chain management, macro trends, digital adoption, and even ESG. Given that they work in tandem with the CEO, providing critical insights and advice on the potential outcome and growth opportunities for business initiatives, CFOs are well-positioned to play a pivotal role in shaping the future of their respective industries.

The role of a CFO in the insurance sector has seen a remarkable evolution from merely heading financial operations to building and heading strategic corporate imperatives for insurance providers. In this sector, CFOs are actively driving decisions for business, reinsurance, enabling capital optimisation, bringing in analytical thinking, and more. This is also largely due to the digital transformation witnessed by insurers, coupled with growing regulatory demands, compliance and data-governance benchmarks, etc.

CFOs understand the importance of value creation for investors, shareholders and other stakeholders that further aids the CEOs’ strategic vision. Since CFOs are at the center of it all, they can stay at the forefront of leading the shift in the ecosystem, and helping insurers navigate the changing landscape.  

What opportunities have evolved in recent times for the CFO community?

Today, CFOs have a much-evolved role as they also contribute as strategic advisors by utilising the correct data and insights to tap into newer opportunities that can help businesses scale. It can be attributed to their comprehension and real time view of the company’s finances, market environment, and regulatory climate.

In recent times, CFOs analyse key stakeholder connections and develop a solid understanding of their motivating factors. They are proactive in their communication and also manage contact with the media, clients, investors, and regulators strategically.

CFOs oversee a recurrent value narrative and are well-versed with the corporate narrative providing confidence to stakeholders.

In what ways and to what extent digitisation has been implemented in the finance sector that has served good results?

Digitisation in the Banking, Financial Services and Insurance (BFSI) sector has substantially transformed the method of operations and has strengthened efficiency and accuracy by leveraging technologies like Artificial Intelligence (AI), Machine Learning (ML) and predictive analysis. In the Insurance sector, we can now process claims online in no time with just a click on a website or on a mobile app thereby reducing the time in policy writing, all thanks to rapid digital advancements.

On similar lines, it also helps insurers in building large distribution channels and speeding up underwriting procedures at a low cost. Digitisation has modified the traditional business models creating new opportunities for the insurance industry. The advancement in technologies is also helping insurers in addressing persistent problem of insurance frauds across the globe. AI acts as gatekeeper preventing insurers from being a victim of insurance claim fraud. Adoption of tech based innovative solutions like digital documents transfer, digital signature, video KYC (know your customer) for identity verification, geo-tagging for address verification etc. has become instrumental in avoiding frauds. 

How may finances be secured for the future amid a global slowdown?

It is vital for the management and CFOs to know about the working-capital requirements to withstand recession as controlling the cash outflow is important and becomes even more essential during hard times like a global slowdown. The company should diligently evaluate the operational cost and strategically plan to minimize the non-essential expenses.

The company should review its capital structure on a regular basis to achieve flexibility in the hard times, check on the liabilities and reevaluate pre-decided/planned initiatives such as acquisitions, capital intensive projects etc. While planning for recession, companies should only take decisions based on data and metrics to ensure team collaboration and timely resolutions to defeat any kind of losses.

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SBI Govandi Branch In Mumbai Alters Its Weekly Off To Friday

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According to the notice served on 1 December, the SBI Govandi Branch will remain shut on all Fridays along with 2nd and 4th Saturdays of the month. Media reports suggested that branches of certain other banks in the city and some other parts of the country also provide half-day working on Sunday

The public sector State Bank of India’s (SBI) Govandi Branch have changed its weekly off from Sundays to Fridays with effect from 1 December, reported a media house,

A notice to the effect has been put outside branch premises. This move is supposedly intended to facilitate the local minority population living in and around Govandi, a north-eastern suburb.

According to the notice served on 1 December, the SBI Govandi Branch will remain shut on all Fridays along with 2nd and 4th Saturdays of the month.

The business hours will operate normally from 10 a.m. to 4 p.m. daily, stated in the notice, starting from Sunday to Thursday.

There were even other reports apprehensions about the SBI Millenium Branch in Dadar following the suit. The branch officials, however, on 29 November outright dismissed the claims.

Media reports suggested that branches of certain other banks in the city and some other parts of the country also provide half-day working on Sunday. This is compensated by all Saturdays off, considering local people’s convenience.

The Govandi SBI Branch move has elicited strong reactions on social media with objections to the Friday closure to cater to “the demands of the local demographics”, and called for regional coordination for uniformity in the concerned areas.

According to Banking circles, in the digital era, there’s exists very little meaning to weekly offs or public holidays, when most banking functions are conducted online. This is due to the operations that bank continue irrespective of the calendar dates.

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SBI Hikes MCLR To 15 Bps Across Tenors

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The State Bank of India has made most consumer loans costlier for borrowers by hiking the marginal cost of funds-based lending rate (MCLR) by 15 basis points across tenors.

The revised rates will be effective from 15 November 2022.

The MCLR is used as base for fixing most of home, auto and personal loans. The benchmark one-year has been increased by 10 basis points (bps) to 8.05 per cent, as against 7.95 per cent earlier.

On the same lines, the two-year and three-year MCLRs have also been hiked by 10 basis points each to 8.25 per cent and 8.35 per cent, respectively, said SBI in a notification on its website.

Along with others, one-month and three-month MCLRs have been raised by 15 basis points each to 7.75 per cent.

The six-month MCLR went up by 15 basis points at 8.05 per cent whereas the overnight rate is on higher side by 10 basis points at 7.60 per cent.

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Tata In Talks With Banks For Rs 15,000 Cr Loan For Air India’s Revival

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The funds be will allocated to cater daily air operations and losses and restore the fleet, pay aircraft rentals and overhauling IT systems, as per the report. The tenure of loan will three-year with an annual reset ranging between 7.5 and 8 per cent

The Tata group is in talks with banks to acquire working capital loans around Rs 15,000 crore for Air India. It purchased the airline from the government last year and is now making a valiant move to revive it, reported a media house.

The funds be will allocated to cater daily air operations and losses and restore the fleet, pay aircraft rentals and overhauling IT systems, as per the report.

The tenure of loan will three-year with an annual reset ranging between 7.5 and 8 per cent, informed an official.

In 2021, State Bank of India (SBI), HDFC Bank, and Bank of Baroda had provided a Rs 23,000 crore, unrated, unsecured loan to Talace which is a Tata Sons company. It then had won the bid for Air India, at a rate of 4.25 per cent. The same loan stands due for renewal, at January end.

As per a bank official, surge in interest rates and low cash in the system will hike borrowing costs. The Reserve Bank of India website has listed 6.91 per cent as the cut-off for 364-day Treasury Bills.

The acquisition of Air India was made by Tata Sons through Talace in October during last year for Rs 18,000 crore. For around 69 years after the government nationalised the airline in August 1953, the ownership of carrier came back with Tatas in January 2022.

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Global Recession May Not Hit India As Hard As It May Hit Other Countries: SBI chairman

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With an estimated growth rate of 6.8 per cent and inflation “much under control,” India is performing considerably well. Majorly in terms of demand, India is an inward-looking economy. This happened because a significant component of the GDP is essentially addressed to the domestic economy

State Bank of India Chairman Dinesh Khara said that the global recession impact, is unlikely to be as pronounced in India as compared to other countries. The continuously increasing recession has left the International Monetary Fund and the World Bank in fear.

With an estimated growth rate of 6.8 per cent and inflation “much under control,” India is performing considerably well. He said this on the side-lines of the annual meeting of the International Monetary Fund and the World Bank on 14 October.

He believes that, majorly in terms of demand, India is an inward-looking economy. This happened because a significant component of the GDP is essentially addressed to the domestic economy.

Khara said that if considering the present situation of the global economy, India is performing reasonably well given its estimated growth rate of 6.8 per cent and inflation “much under control” despite the global headwinds.  The primary reason inflation is not demand-led however, it is essentially supply-side inflation. 

If talking about all economies across the globe, all are going through a rough patch Khara added. Also, he stated that the government is focused on dealing with all such factors and expectedly India’s growth prospects are on the lines on improvement.

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Unseasonal Rains Can Impact Inflation Trajectory: SBI

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In 2019, unseasonal rains that were much lower in proportion had pushed food prices up firmly by 3 per cent over the 4 months that ended January 2020, according to the report

The State Bank of India (SBI) in a report on Wednesday said that unseasonal rains can play a large role in impacting the inflation trajectory and the terminal repo rate might go higher than 6.5 per cent as the fed rate hike is now at 125 bps in 2022. 

The consumer price index (CPI) inflation for September jumped to 7.41 per cent. A decomposition of CPI food inflation into sub-components shows that on a weighted contribution basis, the food inflation was driven by cereal products and vegetables. The seasonal impact of rains on vegetable prices will now become discernible. 

“Going forward, the unseasonal rains in different parts of the country up to 700 per cent in cereal-producing states could have a significantly large impact on cereal and vegetable prices,” the report stated. 

In 2019, unseasonal rains that were much lower in proportion had pushed food prices up firmly by 3 per cent over the 4 months that ended January 2020. However, food inflation cooled soon after with vegetable prices significantly declining by March 2020, it mentioned.

The problem, however, continued with cereal prices at high levels as such prices are sticky downwards and takes time to mean revert, as per the report.

“Due to unseasonal rain patterns and frequency being witnessed across major states now, the surge in food inflation may led to inflation for December hover above 7 per cent and the quarterly average should come around 7 per cent, above RBI’s projection (6.5 per cent),” the bank said.

Also, the bank estimated that the terminal repo rate in the current cycle could now might extend till Febuary 2022, with a 50 bps rate hike penciled in December policy. 

“The only solace could be a lower crude price and the negative growth in protein rich item eggs and steady deceleration in prices of meat and fish. We are now looking at the terminal repo rate going higher than 6.5 per cent,” it added.

Meanwhile, the capacity utilisation of manufacturing companies after reaching high of 75.3 per cent in Q4FY22 had declined to 72.4 per cent, as per the latest RBI OBICUS survey. 

However, growth in bank credit was seen across all major sectors with 16.4 per cent growth as per the latest number as of 23 September 2022. 

Apart from personal loan, it seems corporate working capital utilisation is continuing to be robust and driving the credit offtake.

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Rashmi Mohanty is SBI Cards’ New CFO

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The appointment will be effective from 21 October. Presently, Mohanty serving as the Group CFO and Whole Time Director of Clix Capital. 

SBI Cards and Payment Services Limited (SBI Card) appointed Rashmi Mohanty as the company’s Chief Financial Officer (CFO) effective from 21 October. 

Mohanty will be new CFO succeeding Nalin Negi who served at SBI Card as CFO since December 2017. Negi had informed the company about his resignation in May and his serving tenure lasted till 31 July 2022.  Presently, Mohanty serving as the Group CFO and Whole Time Director of Clix Capital.  

“Mohanty is a Computer Science Engineer and holds a Post Graduate Diploma in Management, Finance & Marketing. She comes with a working experience of 27 in areas like fixed income, foreign exchange and derivatives market, treasury management and corporate finance,” said SBI Card during regulatory filing. 

“During her service period he has successfully built funding and treasury functions of organizations at various life cycles. Such cycles includes GE Capital, Religare and Vedanta,” it further added.

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RBI approves Prashant Kumar’s appointment as CEO of Yes Bank

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The appointment of Prashant Kumar as MD and CEO of Yes Bank is approved for three years effective from 6 October 2022. The said appointment is subject to shareholders’ essence

The Reserve Bank of India (RBI) approved the appointment of Prashant Kumar as MD and CEO of Yes Bank for a tenure of three years effective from 6 October 2022.

In early July, a recommendation from the alternate Board of the private sector lender was given to the RBI for approval. The said appointment of Kumar as Managing Director & Chief Executive Officer (MD &CEO) of the Bank was proposed for a period of three years.

Yes Bank during regulatory filing 6 October said, “We would like to inform that RBI vide its letter dated October 6, 2022, has approved the appointment of Prashant Kumar as the MD & CEO of the Bank for a period of three years with effect from 6 October 2022.”

The said appointment is subject to shareholders’ essence. Back in March 2022, Kumar was appointed as Managing Director & Chief Executive Officer of Yes Bank after the Reconstruction.

Under his tenure, the bank evolved and emerged as a re-energized, re-capitalized and recalibrated organization by continuing to fulfil its constant commitment towards its customers and stakeholders, said the bank.

“This has been one of the rare instances, where an Indian banking institution has been a real turnaround from the brink of collapse within an extremely short time frame of just one year,” it said further.

Before joining Yes Bank, Kumar was Deputy Managing Director and Chief Financial Officer of India’s largest bank SBI. He served there in various capacities and performed various functions.

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