'I AM NOT HAPPY...': SBI CHAIRMAN DINESH KUMAR KHARA OVER BANK'S MARKET VALUE DESPITE STRONG PERFORMANCE
Dinesh Kumar Khara, who is set to retire as Chairman of the State Bank of India (SBI) later this month, has highlighted a remarkable performance during his tenure. In the past four years, SBI's net profits under Khara’s leadership have surpassed the cumulative profits of the previous 64 years, reaching Rs 1.63 lakh crore compared to Rs 1.45 lakh crore historically.
Khara noted that when he took office, the bank's annual profit stood at Rs 14,000 crore, a figure that has now grown to Rs 17,000 crore per quarter. Additionally, SBI has seen a significant increase in productivity, with profit per employee rising nearly sixfold to Rs 30 lakh.
Related News |
Despite these gains, Khara expressed frustration that the bank’s achievements are not being fully recognized in the market. SBI's market capitalization has surged to Rs 1.92 lakh crore from Rs 0.84 lakh crore over the past five years. However, Khara admitted dissatisfaction, saying, “I am not happy. How can I be happy? We are not getting our right value, look at the other players in the market.”
Khara also mentioned that his successor would not be compelled to increase provisions significantly, as the managing directors have collaboratively prepared a robust balance sheet. Looking ahead, he is optimistic that SBI will achieve over 16% profit growth in FY25, aiming for a profit after tax of Rs 1 lakh crore.
Khara highlighted SBI’s substantial strengths, including its extensive network of over 22,000 branches, strong brand presence, and significant liquidity reserves. The average savings account balance has also improved markedly, reaching Rs 17 lakh crore in June 2024, up from Rs 12 lakh crore in March 2020.
Related News |
As Khara prepares to step down, he remains hopeful that the bank’s potential will eventually be reflected in its market value, despite his current dissatisfaction with its recognition.
(With Inputs From PTI Agency)
2024-08-04T12:24:00Z dg43tfdfdgfd