SBI Becomes First Japan Group To List in HK
SBI Becomes First Japan Group To List in HK
SBI Becomes First Japan Group To List in HK
SBI Holdings, a small financial services company, became the first Japanese company to list in Hong
Kong as part of a bid to expand its presence in Asian markets outside its home country.
The company’s Hong Kong depositary receipts traded for the first time on Thursday, closing the day down
0.9 per cent at HK$79.50. The decline was in line with the overall fall in the Hang Seng, which closed the
day down 0.5 per cent at 24,014.00. The company is likely to be followed by other Japanese companies.
keen to raise their profile in the region as well as to procure funds. Japanese service companies have
been pushing to expand overseas, following in the footsteps of their manufacturing peers as the domestic
market faces deteriorating demographics.
Instead of listing depositary receipts in the US, which was the choice of Sony, Toyota and other large
manufacturers as they were globalising decades ago, Japanese companies today are more likely to focus
on Hong Kong, given the fast growth in the Asian region, particularly its biggest market of China.
SBI Holdings said it raised Y14.8bn ($178.3m) through the issuance. It is working on an overallotment
sale that should be completed by the end of the month.
The company plans to use the money it raised to invest in companies in the Asian region, including in
Japan. It will also use a portion of the funds to invest in subsidiaries selling its financial products mainly
via the internet.
SBI Holdings has invested in frontier markets such as Vietnam and Cambodia, where it has bought
stakes in local brokerages. Slightly fewer than 100 of its 3,300 staff are located outside Japan.
Japanese companies may also be keen to issue HDRs in Hong Kong where huge amounts of capital
have been raised in initial public offerings during the past couple of years.
In equity markets in Japan, there has been a dearth of public offerings in comparison to Hong Kong.
There have been 16 fresh listings to date. Haneda Zenith, a producer of concrete products, even
managed a successful listing in early April, in spite of the recent earthquake, tsunami and nuclear plant
problems that have rocked the markets.
There were 26 new listings on the TSE last year, an improvement on 2009’s 23 companies. However, in
terms of value, two large and well-established companies dominated the listings: Daiichi Life Insurance
and Otsuka Holdings.
Japanese companies keen to follow in the footsteps of SBI Holdings will be watching its HDR
performance closely.
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State Bank may be forced to hike base rate by up to 75 bps
By Manju AB Apr 14 2011 , Mumbai
Tags: Personal Finance
State Bank of India (SBI), the country’s largest lender which controls 17 per cent of all domestic bank lending in the
country, may be forced revise its base rate by at least 50-75 basis points from existing 8.25 per cent in a fortnight as
bank's incremental spread turns negative.
The spread in banking parlance means the difference between the interest given on deposits and interest earned
from loans given by the bank.
A senior SBI official told Financial Chronicle, “We will have to revisit our base rate as there is a wide gap between our
base rate and that of other public sector banks. We will have to raise the rates as SBI base rate is one of the lowest
in the system. It could be a 75 basis hike in the rate.”
Even banks such as HDFC Bank, which earlier had kept their base rate low to take advantage of their short term
advances, have moved up their base rate to 8.70 per cent with effect from March 14.
While most public sector banks have been faster in monetary transmission, in tandem with rise in key policy rates by
the RBI. SBI has been slower, holding on to a lower base rate to garner big-ticket advances. Most of the public sector
banks have base rate at 9.5 per cent.
Interest rates may rise for the entire system as RBI tightens rates by another 25 basis points in its first quarter
monetary policy to be unveiled on May 3, 2011 to tame inflation which continues elevated at 8.82 per cent, higher
than the central bank’s comfort zone of 8 per cent by end of March 31.
KR Kamath, CMD, Punjab National Bank, said, “We will take a call after the credit policy. The rise in rates would
however depend on the demand for credit and the availability of liquidity in the system. Deposit rates will however
stay muted for the time being.”
The government borrowing has also begun which is tightening the rates. In the first half of the financial year 2011-12
the government is expected to complete 60 per cent of its gross borrowing of Rs 4.17 trillion. On April 15, RBI is
holding a auction of Rs 12,000 crore.
Company Background Board of Directors Balance Sheet Profit & Loss Statement Quarterly
Results Key Financial Ratios Share Holding Pattern Mutual Fund Holdings
Incorporation Year 1955
Chairman O P Bhatt
Company Secretary
State Bank Bhavan, Madame Cama Marg, , , , Mumbai -
Registered Office
400021, Maharashtra
URL http://www.sbi.co.in
B M Chatrath & Co , Dagliya & Co , K C Mehta & Co , K G
Somani & Co , K K Soni & Co , Kalyaniwala & Mistry ,
Auditors Venugopal & Chenoy , A K Sabat & Co , V K Jindal & Co ,
Gupta & Shah , Dutta Sarkar & Co , Essveeyar , M Verma &
Associates , Krishnamoorthy & Krishnamoorthy
Listing BSE , NSE
BSE Code 500112
NSE Symbol SBIN
BSE Group A
BANK NIFTY , BSE Bankex , BSE Sensex , BSE 100
INDEX , BSE 200 , BSE 500 , S&P CNX 500 , S&P CNX
Index Constituent of
NIFTY , CNX 100 , BSE PSU , CNX Service Sector Index ,
CNX PSU Bank Index
Face Value (Unit Rs. INR) 10.00
Market Lot 1
ISIN INE062A01012
Datamatics Financial Services Ltd, Plot No-A-16-17, Part B,
Registrar Details Cross Lane, MIDC, Marol, Andheri (East), Mumbai -
400093, Maharashtra
PNB
Profile:
With over 56 million satisfied customers and more than 5000 offices including 5 overseas branches, PNB
has continued to retain its leadership position amongst the nationalized banks. The bank enjoys strong
fundamentals, large franchise value and good brand image. Besides being ranked as one of India's top
service brands, PNB has remained fully committed to its guiding principles of sound and prudent banking.
Apart from offering banking products, the bank has also entered the credit card, debit card; bullion
business; life and non-life insurance; Gold coins & asset management business, etc.
Since its humble beginning in 1895 with the distinction of being the first Swadeshi Bank to have been
started with Indian capital, PNB has achieved significant growth in business which at the end of March
2010 amounted to Rs 435931 crore. PNB is ranked as the 2nd largest bank in the country after SBI in
terms of branch network, business and many other parameters. During the FY 2009-10, with 40.85%
share of CASA deposits, the Bank achieved a net profit of Rs 3905 crore. Bank has a strong capital base
with capital adequacy ratio of 14.16% as on Mar’10 as per Basel II with Tier I and Tier II capital ratio at
9.15% and 5.01% respectively. As on March’10, the Bank has the Gross and Net NPA ratio of 1.71% and
0.53% respectively. During the FY 2009-10, its ratio of Priority Sector Credit to Adjusted Net Bank Credit
at 40.5% & Agriculture Credit to Adjusted Net Bank Credit at 19.7% was also higher than the stipulated
requirement of 40% & 18% respectively.
The Bank has been able to maintain its stakeholders’ interest by posting an improved NIM of 3.57% in
Mar’10 (3.52% Mar’09) and a Return on Assets of 1.44% (1.39% Mar’09). The Earning per Share
improved to Rs 123.98 (Rs 98.03 Mar’09) while the Book value per share improved to Rs 514.77 (Rs
416.74 Mar’09). Punjab National Bank continues to maintain its frontline position in the Indian banking
industry. In particular, the bank has retained its NUMBER ONE position among the nationalized banks in
terms of number of branches, Deposit, Advances, total Business, Assets, Operating and Net profit in the
year 2009-10. The impressive operational and financial performance has been brought about by Bank’s
focus on customer based business with thrust on CASA deposits, Retail, SME & Agri Advances and with
more inclusive approach to banking; better asset liability management; improved margin management,
thrust on recovery and increased efficiency in core operations of the Bank. The performance highlights of
the bank in terms of business and profit are shown below:
Rsin Crore
With the help of advanced technology, the Bank has been a frontrunner in the industry so far as the
initiatives for Financial Inclusion is concerned. With its policy of inclusive growth, the Bank’s mission is
“Banking for Unbanked”. The Bank has launched a drive for biometric smart card based technology
enabled Financial Inclusion with the help of Business Correspondents/Business Facilitators (BC/BF) so as
to reach out to the last mile customer. The Bank has started several innovative initiatives for marginal
groups like rickshaw pullers, vegetable vendors, dairy farmers, construction workers, etc. Under
Branchless Banking model, the Bank is implementing 40 projects in 16 States.
Backed by strong domestic performance, the Bank is planning to realize its global aspirations. Bank
continues its selective foray in international markets with presence in 9 countries, with 2 branches at
Hongkong, 1 each at Kabul and Dubai; representative offices at Almaty, Dubai, Shanghai and Oslo; a
wholly owned subsidiary in UK; a joint venture with Everest Bank Ltd. Nepal and a JV banking subsidiary
“DRUK PNB Bank Ltd.” in Bhutan. Bank is pursuing upgradation of its representative offices in China &
Norway and is in the process of setting up a representative office in Sydney, Australia and taking
controlling stake in JSC Dana Bank in Kazakhastan.
Company Background Board of Directors Balance Sheet Profit & Loss Statement Quarterly
Results Key Financial Ratios Share Holding Pattern Mutual Fund Holdings
Particular 201003 200903 200803 200703 200603
Deposit Ratios
Advance/Deposit Ratio 74.34 72.88 70.55 65.97 60.60
Investment/Deposit Ratio 30.74 31.20 32.38 33.23 41.16
Cash/Deposit Ratio 7.71 8.59 9.02 13.78 14.74
Income Ratios (in %)
Interest Expended/Interest Ratio 60.30 64.28 61.20 53.60 51.31
Other Income/Total Income 14.44 14.98 12.44 14.68 16.55
Interest Expended/Total Funds 4.76 5.51 4.83 3.91 3.62
Net Interest Income/Total Funds 3.14 3.06 3.06 3.39 3.44
Non-Interest Income/Total Funds 1.33 1.51 1.12 1.26 1.40
Net Profit/Total Funds 1.44 1.39 1.13 1.00 1.06
Return on Net Worth 26.59 25.84 19.58 16.03 17.01
BANK OF INDIA
Bank of India was founded on 7th September, 1906 by a group of eminent businessmen from Mumbai. The
Bank was under private ownership and control till July 1969 when it was nationalised along with 13 other
banks.
Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakh and 50 employees, the Bank has
made a rapid growth over the years and blossomed into a mighty institution with a strong national presence
and sizable international operations. In business volume, the Bank occupies a premier position among the
nationalised banks.
The Bank has 3101 branches in India spread over all states/ union territories including 141 specialised
branches. These branches are controlled through 48 Zonal Offices . There are 29 branches/ offices (including
three representative offices) abroad.
The Bank came out with its maiden public issue in 1997 and follow on Qualified Institutions Placement in
February 2008. . Total number of shareholders as on 30/09/2009 is 2,15,790.
While firmly adhering to a policy of prudence and caution, the Bank has been in the forefront of introducing
various innovative services and systems. Business has been conducted with the successful blend of
traditional values and ethics and the most modern infrastructure. The Bank has been the first among the
nationalised banks to establish a fully computerised branch and ATM facility at the Mahalaxmi Branch at
Mumbai way back in 1989. The Bank is also a Founder Member of SWIFT in India. It pioneered the
introduction of the Health Code System in 1982, for evaluating/ rating its credit portfolio.
The Bank's association with the capital market goes back to 1921 when it entered into an agreement with
the Bombay Stock Exchange (BSE) to manage the BSE Clearing House. It is an association that has
blossomed into a joint venture with BSE, called the BOI Shareholding Ltd. to extend depository services to
the stock broking community. Bank of India was the first Indian Bank to open a branch outside the country,
at London, in 1946, and also the first to open a branch in Europe, Paris in 1974. The Bank has sizable
presence abroad, with a network of 29 branches (including five representative office) at key banking and
financial centres viz. London, Newyork, Paris, Tokyo, Hong-Kong and Singapore. The international business
accounts for around 17.82% of Bank's total business.
Company Background Board of Directors Balance Sheet Profit & Loss Statement Quarterly
Results Key Financial Ratios Share Holding Pattern Mutual Fund Holdings
Particular 201003 200903 200803 200703 200603
Deposit Ratios
Advance/Deposit Ratio 74.24 75.47 73.58 70.29 69.87
Investment/Deposit Ratio 28.53 27.79 28.64 31.46 35.00
Cash/Deposit Ratio 5.85 6.08 7.02 5.98 5.50
Income Ratios (in %)
Interest Expended/Interest Ratio 67.80 66.36 65.77 61.50 62.55
Other Income/Total Income 12.77 15.73 14.63 14.89 14.42
Interest Expended/Total Funds 4.84 5.36 5.07 4.33 4.24
Net Interest Income/Total Funds 2.30 2.72 2.64 2.71 2.54
Non-Interest Income/Total Funds 1.04 1.51 1.32 1.23 1.14
Net Profit/Total Funds 0.70 1.49 1.25 0.88 0.68
Return on Net Worth 14.16 29.18 27.58 21.25 15.37
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