Saving Rates Hike not in Cards: SBI
The two banks that have offered 6% on their saving bank deposits are the banks with a very small network offices. Therefore they perhaps need to take this battle for saving bank deposits to the pricing front rather than the service front, but our understanding is that saving bank customers are looking for much more. They are looking for services. They are looking for convenience. They are looking for dealings, they are looking for other offers.
So we are constantly trying to enrich the offering to saving bank customers, we have already introduced a multicity cheque book for all our customers which gives them at par facility at all centres of India. As of now we have not moved anywhere for giving a higher rate of interest on saving bank because we do not think that may be very useful.
Already for a seven day deposit any customer can get 7% rate of interest. So, I do not think saving bank interest rate is a very important deciding factor for the customer.
how much of your current liability book is in form of savings account?
It is about 38% to 40%. It changes during the month. It is high on the salary day. It then tapers off.
How much of this is above the one lakh rupee category?
About one-third is above one lakh and two-thirds is below one lakh.
Now to the biggest trigger on capital infusion by the government because we understand that the finance ministry will hold another meeting next week to discuss infusion to PSU banks and including SBI what is it in terms of the latest that you are hearing?
See we do not track it minute to minute or day to day because we have a categorical assurance in public from an authority as high as the finance minister and endorsed by the secretary financial services Mr. Mittal who addressed our board meeting. And the government is absolutely committed to put in amounts of about 3000 to 4000 crore this fiscal itself for capital of SBI.
So, we have left it at that. What form it would be, whether it would be a preferential allotment, a rights issue or a QIP, we have not really asked the government on specifics because it is the prerogative of the largest shareholder to decide what form and structure it would take, but you can rest assured that it is happening well within this fiscal.
The mode of infusion is quite relevant and interesting since you say that QIP could also be in option, but if you go ahead with the QIP option that will also lead to some amount of equity dilution?
The QIP of 10% remain that the government holding comes down from 59.4 to about 55, but it is not for us, it is not right for us to sugest that because government is the largest shareholder and they have to take a view that where would they like the shareholding to remain whether at 59.4, whether it goes up or goes down. We would be happy with any decision they take in this regard.
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