The first goal for new SBI chief is keeping the pace
The nation’s largest public sector bank, State Bank of India (SBI) has undergone a revamp of its top management and how.
After appointing Pratip Chaudhuri as the new chairman, the bank has also promoted its former chief financial officer, Hemant Contractor, as the new managing director (MD) for international banking services.
The bank also appointed three other MDs, including A Krishnakumar, Diwakar Gupta and interim chairman R Sridharan.
Speaking to the media in his first interaction after taking reins, Chaudhuri said he would like to maintain the current growth phase and see the bank expand its retail banking services and establish leadership there.
“We also need to make sure non-performing assets (NPAs) are less than industry levels,” he said, while speaking about the challenges going forward.
He said NPAs remain high from the textile industry, gems and jewellery and other sectors dependent on exports, which have been hit by the global slowdown.
Chaudhuri said the bank’s topline, which may have nudged a little below the industry, needs to improve. The bank would focus on expansion of branches internationally to optimise performance.
“OP Bhatt was a very capable leader and SBI was fortunate to have been led by him,” Chaudhuri said speaking about his predecessor.
On the lender’s controversial product, the teaser home loans, Chaudhuri said, “We will speak with RBI on teaser loans as they feel these loans can be risky.”
Chaudhuri also said that the short term loan market is too crowded and the lender would like to increase the average tenure of the loans to guarantee better returns.
“We do not expect much of a drop in the net interest margins,” said Hemant Contractor.
Talking about SBI’s rights issue Chaudhuri said, “Government is convinced of the need and is receptive to our requirement.” The lender also aspires to be a leading player in the domestic bond market, he said.
Chaudhuri maintained that consolidation of associate banks would continue but the lender would make acquisitions “only if it brings value.”
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