FCNR inflows behind recent rate cut: SBI

Dec 23, 2013, 06.19 PM IST

State-run lender State Bank of India recently cut home loan rates. In a discussion with CNBC-TV18's Gopika Gopakumar, SBI Chairman Arundhati Bhattacharya said the rate cuts came on the back of excess liquidity in the banking system.

Tags SBI, rate cut, FCNR, Shyamal Acharya

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FCNR inflows behind recent rate cut: SBI

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The liquidity was brought on account of the huge FCNR inflows we have seen in the country.

Arundhati Bhattacharya

Chairperson

SBI

"The liquidity was brought on account of the huge FCNR inflows we have seen in the country," she said.

Also read: Will interest rates go down from here?

She added that if credit offtake did not remain adequate even with high liquidity, she would "have to see what area it could be deployed in".

Bhattacharya also spoke about the Shyamal Acharya case and said the bank had restricted gifts to about Rs 500-750. "We will try at this point of time to have a no-gift taking and no-gift giving policy," she said.

SBI stock price

On December 23, 2013, State Bank of India closed at Rs 1757.55, up Rs 5.70, or 0.33 percent. The 52-week high of the share was Rs 2550.00 and the 52-week low was Rs 1452.90.

The company's trailing 12-month (TTM) EPS was at Rs 179.98 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 9.77. The latest book value of the company is Rs 1445.60 per share. At current value, the price-to-book value of the company is 1.22.

Kebugaran Hidup