News & Events

State Bank of India (SBI) Chairperson Arundhati Bhattacharya on Tuesday confirmed that after the merger of SBI with its associate lenders, rationalisation of branches has to happen, because one cannot have an associate branch and an SBI branch sitting side-by-side.

Addressing delegates at an SBI meet here, Bhattacharya said that she felt it is a waste of resources. "We are conscious of that and we will use those resources elsewhere. Redeployment will happen," she said.

Earlier this year, the Cabinet gave its approval for the merger of SBI, its associate lenders and Bharatiya Mahila Bank (BMB), which would make the state-owned lender a global-sized bank.

SBI has five associate lenders - State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore, and State Bank of Hyderabad.

State Bank of Bikaner and Jaipur, State Bank of Mysore, and State Bank of Travancore are listed. The merged entity will become a banking behemoth, which could compete with the largest in the world, with an asset base of Rs 37 lakh crore (over $555 billion), 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.

SBI had said all its associate banks and BMB will be merged into it, which will add an additional Rs 8 lakh crore to its assets. It has close to 16,500 branches, including 191 foreign offices across 36 countries. After merger, SBI is eyeing to be among top 10 banks globally from 45. When asked how soon it would happen, Bhattacharya said, "It is difficult to say at this moment. However, it all depends on how the Indian economy grows, because in the top 10, there are three Chinese banks. The Chinese economy is growing rapidly and in turn the banks are growing."

State Bank of India Chief General Manager (Bangalore Circle) Rajni Mishra said, "Today, Bangalore Circle has a business of Rs 1,22,000 crore and we have been growing at 16% year-on-year. We look forward for a rewarding and satisfying financial year."

The New Development Bank (Brics Bank) will raise $250-$500 million bonds denominated in Indian rupees to fund infrastructure projects in India.
 
The move to float local currency bonds has the support of the government which is keen on internationalisation of the rupee in order to reduce risks due to volatility in global currencies.

"Large part of volatility is because of countries acting in their own interest and not because of economic imperative. So we have to calibrate our response according to our priorities. Borrowing in local currency is one step in that direction," said K V Kamath, president, NDB.
 
NDB had earlier completed a green financial bond issuance of 3 billion yuan (around $450 million) on the basis of a domestic triple A rating. Kamath said NDB had received positive feedback in respect of a 'masala bond' issue. He was speaking at the Brics financial forum hosted by Exim Bank of India in Goa on Saturday.        
 
To expedite over 2.50 lakh cases pending for adjudication, the income tax department is getting tough. It has asked its officials to regularly submit data of number of appeals disposed of against the target set for the particular period.

The Central Board of Direct Taxes (CBDT) has asked the officials to provide such data every month to begin with.

The department has also asked income tax commissioners to upload the data of all the appeals pending before them as on February 29, 2016, on its data collection portal by October 21.

"The said data is required on a monthly basis by the board to review the performance of each CIT (A) (Commissioner of Income-tax-Appeals) in-charge vis-a-vis targets. It is hence requested that the said data may be sent to the statistics (R&S) wing by all the CITs (A) concerned," CBDT said.

"The said campaign would be systems-driven. Hence... it may be ensured that data of all the appeals pending before CIT (A) as on February 29, 2016, is uploaded on ITBA module for CIT (A) latest by October 21," it said. According to government data, over 73,000 appeals with tax of above Rs 10 lakh and 1.86 lakh below Rs 10 lakh are pending before CITs.
After banning 344 combination drugs earlier this year, the government has turned its attention to another 500 such medicines, setting the stage possibly for another round of confrontation with thepharma industry.

According to a person familiar with the development, the central drug regulator has sent letters to nearly 300 companies, which have sought marketing approvals for fixed dose combination (FDC) drugs. Some of these firms have been issued show-cause notices and asked to conduct Phase IV trials — a post-marketing study — as evidence to show their products are safe and effective.

But in a sign that the government is not taking a totally adversarial stand on the issue, some companies have been granted no-objection certificates (NOCs) for their products. The exact number of approvals could not be ascertained. Pfizer has received a letter granting it an NOC, a company spokesperson confirmed to ET. The company did not reveal the name of the combination drug for which the letter was issued.

An FDC is a cocktail drug of two or more therapeutic ingredients packed in a single dose. In March this year, the government had decided to ban 344 FDCs that it found to be irrational and unsafe. The move shook the industry, triggering a deluge of court cases by drug makers to obtain a stay on the ban.
 
The banned FDC market was valued at Rs 3,535 crore in June, according to market research agency IMS Health. Several companies with the largest share of the banned FDC market reflected a reduction in sales of these drugs between May and June, with some seeing up to 30% drop in sales.
 
"This is the second list (of FDCs) for which examination is complete," said a government official. "Some drugs have been found to be irrational and, so, show-cause notices have been issued (to the companies)."
 
The official did not divulge the names of companies that had received the show-cause notices, the number of such notices and the names of FDCs. The expert body is currently examining around 50 more FDCs, said the official.

Various applications filed by manufacturers since 2013 have been examined in consultation with an expert committee constituted for the purpose, states a notification from the Central Drugs Standard Control Organisation, dated October 14. "Based on such examination, decisions on the applications for issuance of NOCs for continued manufacturing and marketing/ show-cause notices/letters for conducting Phase IV trial have been taken," the notification said.
Software services firm Zensar Technologies today reported a 25% decline in consolidated net profit at Rs 68.8 crore for the July-September quarter, impacted by currency movement.

The Pune-headquartered mid-sized firm had posted a net profit of Rs 91.3 crore in the year-ago period.

Consolidated revenue rose by 2.7% to Rs 776.7 crore during the period from Rs 756.4 crore in the same quarter of 2015-16.

For the sequential quarter, net profit declined 9.8% from Rs 76.2 crore, while revenue was up 1.9% from Rs 762.4 crore in the April-June 2016 quarter.

"The business and operating parameters in Q2 FY17 has been good... We expanded our gross margin and EBITA both in a quarter where we also had wage increase, overall showing good operating results... PAT was impacted because of the currency issue both on Q-o-Q and year-on-year basis," Zensar Technologies CEO and MD Sandeep Kishore said.

He said that the reported quarter was a good one for new order booking and the company continues to have a robust pipeline across all service lines.

"We have signed large deals with marquee clients in the Digital and IMS Cloud businesses. Innovative new solutions that we have launched in the areas of automation and robotics aligned with our clients' business needs, have begun to show traction," he added.

Digital services continued its growth momentum and contributed 27.8% to the said quarter revenue.

The company had 8,316 employees at the end of September, 2016, while the attrition rate stood at 15.6%.During the said quarter, the company added 16 new clients with the number of active clients at 187 at the end of the reported quarter.
 
The company saw its revenues (in constant currency terms) increase Q-o-Q by 1.5% for application management services, 4.2% for infrastructure management services and 13.9% for services. It, however, declined 13.6% for maintenance services.
 
Apart from revenues from manufacturing vertical, which declined by 2.2%, all other verticals grew. Retail and consumer services was up 10% Q-o-Q, financial services 1.8% and emerging verticals were higher by 14.6%.
 
In terms of geography, revenues from the the US grew 2%, Europe by 3%and Africa by 4.1% on Q-o-Q basis.
 
 
Bookmark and Share