65th
AGM of SBI
Article published as on Tuesday, 14th
July, 2020 at 5:00 p.m.
Here highlights of AGM will be
provided.
14th July 3:00p.m the AGM was scheduled
(here is the notice given to exchange)
As I was registered as speaker
and was intimated that the AGM is rescheduled at 11: am
Many speakers raised their
queries such plans on raising of funds by the bank, some appreciated excellent
results some expressed their displeasure no dividend and some also raised
queries on the existence of a fake SBI branch opened in Tamil Nadu.
Even I raised my query and asked
the management the number of shareholder ineligible to vote due to criteria of
minimum 50 shares required to vote, as there are 4 shareholder directors and
yet small shareholders are not allowed to vote and requested to make efforts in
making voting rights available to everyone.
Coming to the answers given by
chairman Rajnish kumar.
(His
voice was very low and hence unclear so difficult to make out what he is
saying, I have decoded whatever could be understood.)
Highlights and answers to shareholders queries.
NPA
recover: last year there was a
very good performance and recovery in large account 19/20 total recovery was
22,359 crores of NPA.
And 9250 in written off accounts,
this year also efforts continue, hoping that we should be able to repeat our
performance.
Capital
Adequacy Requirement:
policy of SBI to maintain at least 1% above regulatory requirement (12.10%
currently).
Growth rate in loan advances is
8%, earlier it was higher, now due to pandemic it is revised.
Yes bank was saved by SBI as per the scheme drawn by
Government of India to create financial stability, return on investment will
happen in 3 years.
Steps for all round growth, doing very well in deposits growth and advance
growth, asset quality front, some difficulties but still able to maintain them,
Fake SBI branch surprised everybody, FIR was launched, first type
of mystery for me also, no fraud has happened and no claim regarding any
loss of money
SRA: investment will be done as per and within the guidelines
20,000 crores to MSME distributed
will be 100% guaranteed by the govt, they need liquidity due to the covid.
Target of opening 500 branches this year, but due to covid-19 situation target
has to be reviewed.
Dividend: due to covid-19 bank has decided to preserve
capital, like to watch performance up to September, and then take a decision
About market cap of HDFC bank
more than SBI it’s the market perception and also the profits of HDFC are more
than the SBI, focus on continuous improvement in the performance and sooner or
later I believe that strength will be reflected in the market cap.
Relating to subsidiaries still
evaluating whether SBI AMC could be launched in market, all subsidiaries are
doing well.
Capital raising, how much amount to raise will be decided.
NIM will be maintained, no further improvement expected
SBI caps future does not seems bright, other
subsidiaries well performing,
CSR for covid related done
through SBI foundation about 35 crores rupees.
Provision on bad debt, provisions will be increased to strengthen balance
sheet. To enable bank to deal with any shocks arising out of covid-19,
Number of shareholders who were ineligible to vote due
to holding less than 50 shares, that number will be shared separately.
(even in last EGM we heard the same thing and numbers are
not yet prepared? They seem least interested in providing the data. Another thing
Rajnish Kumar is retiring in October this year.)
[Update as on 12th august, 2020 I got reply and here it is
‘In reference to your
question/query raised by you in the AGM of the Bank held on
14.07.2020, we submit reply as under:
Question: How many
shareholders were eligible to vote due to criteria of having minimum 50
shares?
Response : 11.83 lac
shareholders (out of total 29.48 lac shareholders) were eligible to vote in the
Annual General Meeting held on 14.07.2020.’
(I am glad they replied and
provided the numbers but it’s disappointing at the same time that out of 29.48
lac shareholders 17.65 lac shareholders were ineligible to vote.)]
Regarding customer service lots of steps have been
taken to improve their experience.
(SBI has more than 1.76 lakh customer complains
pending at the end of year pg. no.181 of annual report)
Regarding CSR activities they have well defined policies and there are no
individual beneficiaries.
He further explained general business points but the
voice was not good and hence interpretation was difficult.
My conclusion
SBI AGM was a bit disappointing, as getting key inputs
from management remains the key reason for attending AGM’s, as an investor very
few important points were known.
Attending SBI AGM was not fruitful for me, it is
better to watch management interview on business channels and on internet.
I read somewhere the quote of Radhakishan Damani.
Radhakishan Damani revealed this
investment credo when he was asked why he was buying truckloads of HDFC Bank
instead of SBI, the PSU behemoth.
“Dharavi Dharavi hota hai, aur Peddar Road
Peddar Road,”
(Source
click here: et
website & rakeshjhunjhunwala
websites)
The meeting continued till approximate 13:45 meaning,
2hours and 45 minutes.
Here is the list of speakers who expressed their query,
opinion to the management
Gautam Tiwari
Lekha shah
Ashalata maheshwari
Asoi bhesania
Bharat shah
Mohit parashar
Dinesh Bhatia
Ashish bansal
vinay bhide
Beruz pouredehi
Manisundaram AV
Harsh visharia
Ashok chakravati
Shanti Prakash
Santosh kumar saraf
Chandravati gattani
Shailesh mahadevia
Prakash galava
K. S. balasubramanian
K. ganesh
P. jaichand
Sadanan Sastry
h. s. Patel
I find lot of scope of improvement for SBI!
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