Page 6 - Banking Finance March 2022

BANK UPDATE

the Equirus and the Federal Bank that it will be a sovereign-backed fa- The e-auction for Patna Bakthiyarpur
team, in keeping with the spirit of col- cility, a top government source said. is scheduled to take place on February
laboration. The investment strategy Finance Minister Nirmala Sitharaman 23, and GOL Offshore on February 21.
seeks to offer superior risk-adjusted- in her budget speech last week talked Genix Automations and Guru Ashish
return for investors against the back- about launching a central bank-backed Texfab are to be auctioned on Febru-
drop of rock bottom interest rates." 'digital rupee' soon. ary 15, while e-auction for Steelco
A top government source, who wished Gujarat and Andhra Ferro Alloys is
Indian Bank reports 34% not to be identified said, the digital scheduled for March 4.
rise in Q3 profits to Rs. currency issued by the RBI would be SBI said these sales are subject to ap-
numbered in units, just like every fiat proval by the competent authority of
690 crore currency has an unique number. the bank.
Indian Bank reported a 34 per cent "The units issued in digital rupee would The auction of Patna Bakthiyarpur Toll-
year-on-year (YoY) rise in net profit at
be included in the currency in circula- way, Steelco Gujarat Ltd, Andhra Ferro
Rs 690 crore for the December quar-
tion. It would not be very different Alloys, Genix Automations and Guru
ter, despite a 21 per cent growth in
from fiat currency. It would be more Ashish Texfab will be held under Swiss
provisions and contingencies. Net like an electronic form of fiat currency, Challenge Method, based on an exist-
profit was Rs 514 crore in the year-ago so in a sense it would be a ing offer in hand, who will have the
period.
governmentmandated electronic wal- right to match the highest bid, the
The bank saw a 30 per cent rise in let," the source said. lender said.
earnings from treasury operations, Under the Swiss Challenge Method, an
unlike most of its peers, helping its The RBI has indicated that the digital
rupee would be ready by the end of interested bidder makes a proposal for
profit numbers.
next financial year, the source added. a project (here asset). The seller puts
Its net interest margin from domestic the details of the project in public so
operation was at 3.03 per cent for the SBI to sell 6 NPAs with Rs. that others can match it. After receipt
December quarter against 2.89 per of bids, the original contractor gets an
cent for the preceding quarter. The 406cr dues opportunity to match the best bid.
NIM was 3.13 per cent in the year-ago SBI has lined up six non-performing The interested ARCs/banks/NBFCs/FIs
period. assets (NPAs) for sale to asset recon- can conduct due diligence of these as-
The bank's operating profit rose 16 per struction companies (ARCs) to recover sets with immediate effect, after sub-
cent to Rs 3,288 crore for the quarter dues of nearly Rs 406 crore. mitting expressions of interest and ex-
against Rs 2,846 crore in the year-ago The six NPA accounts put up for sale to ecuting non-disclosure agreements
period. Net interest income was at Rs the ARCs are -- Patna Bakthiyarpur with the bank.
4,395 crore compared with Rs 4,314 Tollway with outstanding of Rs 230.66 "We reserve the right not to go ahead
crore over the same period. The bank crore; Steelco Gujarat Ltd Rs 68.31 with the proposed sale at any stage,
set aside Rs 2,493 crore for provisions crore; GOL Offshore Ltd Rs 50.75 without assigning any reason. The de-
and contingencies in the quarter under
crore; Andhra Ferro Alloys Ltd Rs 26.73 cision of the bank in this regard shall
review against Rs 2,061 crore it did
crore; Guru Ashish Taxfab Rs 17.07 be final and binding," SBI said.
earlier. crore and Genix Automations Pvt Ltd
Rs 12.23 crore. Union Bank India's Q3 net
India's digital currency de-
"In terms of the bank's policy on sale profit up 49% to Rs. 1,085
but likely in 2023 of financial assets, in line with the regu-
India's very own official digital cur- latory guidelines, we place the follow- cr
rency is likely to debut by early 2023, ing accounts for sale to ARCs/banks/ State-owned Union Bank of India
which will mirror any of the currently NBFCs/FIs, on the terms and conditions posted a 49 percent jump in net profit
available private company-operated indicated there against," SBI said in to Rs 1,085 crore in the third quarter
electronic wallets, but with a change the sale notices for these assets. ended December 31.

6 | 2022 | MARCH | BANKING FINANCE