SBI's Acharya-led corporate group's decisions under scanner

Nov 27, 2013, 09.31 PM IST

Sources have said that the bank could see tough times going ahead. This means the decisions taken by the mid corporate group headed by Shyamal Acharya could come under widespread regulatory scrutiny.

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Sources have said that the bank could see tough times going ahead. This means the decisions taken by the mid corporate group headed by Shyamal Acharya could come under widespread regulatory scrutiny.

Like this story, share it with millions of investors on M3

SBI's Acharya-led corporate group's decisions under scanner

Sources have said that the bank could see tough times going ahead. This means the decisions taken by the mid corporate group headed by Shyamal Acharya could come under widespread regulatory scrutiny.

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The country's largest bank State Bank of India (SBI) is in a state of shock after the Central Bureau of Investigation (CBI) filed a case of alleged bribery against its deputy managing director Shyamal Acharya.

Also read: Cash-for-loan scam: Takru says SBI MDs report by weekend

Sources have said that the bank could see tough times going ahead. This means the decisions taken by the mid corporate group headed by Shyamal Acharya could come under widespread regulatory scrutiny.

Acharya was in charge of Rs 2 lakh crore loan portfolio in the bank's mid corporate group. The group deals with lending to corporate customers with an annual turnover of upto Rs 500 crore and credit limit of above Rs 50 crore.

Also read: CBI continues SBI probe, finds 4kg gold in Dy MD's lockers

As on Sept 2013, the mid corporate group accounted for nearly 20 percent of SBI's total loan book. The portfolio also saw gross NPAs worth Rs 23,467 crore as on September-end.

Bankers fear that Shyamal Acharya's involvement in the bribery case could impact the speed of SBI's lending decision. But sources say that more clarity will be available once SBI completes its internal investigation by early next week.

SBI stock price

On November 27, 2013, State Bank of India closed at Rs 1763.90, down Rs 21.95, or 1.23 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 9.8. 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.

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