State Bank of India (SBIN) Earnings Call Transcript & Summary

Very good afternoon to all. On behalf of State Bank of India, I extend a very warm welcome to all our esteemed shareholders, who has spared their valuable time to attend the General Meeting. We are pleased to have with us the Government of India nominee, Soumyajit Ghosh of Department of Financial Services, Ministry of Finance, who has joined the meeting through VC. We welcome him to this meeting. May I now request our respected Chairman, sir, to please start the proceedings of the General Meeting of the Shareholders of State Bank of India?

I, Rajnish Kumar, Chairman of the State Bank of India, have ascertained that the quorum for the General Meeting has been established. I call to order the General Meeting of the Shareholders of the State Bank of India. I would now like to introduce to the shareholders the directors present here on the dais and through VC. The directors present with me are: to my right, Shri Dinesh Kumar Khara, Chief Managing Director of Global Banking & Subsidiaries; to my left, Shri Arijit Basu, Managing Director, Clients -- Commercial Clients Group & IT; and to the right of Mr. Arijit, Shri Challa Sreenivasulu Setty, Managing Director, Retail & Digital Banking with additional charge of Distressed Assets. Other directors present through VC are Shri B. Venugopal. Shri B. Venugopal is a director reelected by the shareholders under Section 19(c) of the SBI Act. Dr. Ganesh Ganpati Natarajan. Shri Ganesh Ganpati Natarajan is a director elected by the shareholders under Section 19(c) of SBI Act. Shri Ketan Shivji Vikamsey. Shri Ketan Shivji Vikamsey is a director elected by the shareholders under Section 19(c) of the SBI Act. Shri Mrugank Madhukar Paranjape. Shri Paranjape is a director elected by the shareholders under Section 19(c) of the SBI Act. Dr. Pushpendra Rai. Dr. Rai is a director renominated by the Central Government under Section 19(e) of the SBI Act. Dr. Purnima Gupta. Dr. Purnima Gupta is a director nominated by the Central Government under Section 19(d) of the SBI Act. Shri Sanjeev Maheshwari. Shri Maheshwari is a director nominated by the Central Government under Section 19(d) of the SBI Act. Shri Chandan Sinha. Shri Chandan Sinha is a director nominated by the Central Government under Section 19(f) of the SBI Act. I now request Shri Chalasani Venkat Nageswar, Chief Managing Director and CFO, to read the notice convening the General Meeting.

Notice. Notice is hereby given that a General Meeting of Shareholders of State Bank of India will be held on Tuesday, the 14 July 2020 at 3 p.m. at State Bank Auditorium, State Bank Bhavan Complex, Madame Cama Road, Mumbai, 400021, Maharastra. The meeting will be held through video conferencing, other audiovisual means facility to transact the following business: to consider, and if thought fit, pass with or without modifications the following resolutions as a special resolution. Resolve that pursuant to the provisions of State Bank of India Act, 1955, hereinafter referred to as the Act, read with the State Bank of India General Regulations, 1955 and subject to the approvals and the consents and sanctions, if any, of Reserve Bank of India, Government of India, Securities and Exchange Board of India and/or any other concerned and appropriate authorities, whether in India or abroad, as may be required in this regard and subject to such terms, conditions and modification thereto as may be prescribed by them, if any, in granting such approvals, consents and sanctions and which may be agreed by the Central Board of Directors, hereinafter called the Board, which shall be deemed to include the Executive Committee of the Central Board constituted under Section 30 of the Act read with Regulation 46 of State Bank of India General Regulations, 1955, and any other Committee of Directors constituted under Section 30 of the Act duly authorized by the Central Board to exercise its powers, including the powers conferred by this resolution of the bank and subject to regulations viz. SEBI (Issue of Capital and Disclosure Requirements) Regulation, 2018, ICDR Regulations, as amended up to date, subject to applicable rules, regulations, guidelines, circulars, notifications issued by SEBI, RBI and/or and all other relevant authorities, whether in India or abroad, from time to time and subject to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as Listing Regulations and listing agreement entered into with stock exchanges, where the equity shares/GDRs of bank are listed, consent of the shareholders of the bank be and hereby accorded to the Board, to create, offer, issue and allot such number of equity shares of INR 1 each for an amount not exceeding INR 20,000 crores.

So this can be taken as read, please. So please, this can be taken as read. This portion can be taken as read.

Okay.

This can be taken as read.

Okay.

You're done? I now request the shareholders present here. The [indiscernible], right? E-voting? I request now the Chief Managing Director and CFO to briefly explain e-voting procedure.

The Chairman, ladies and gentlemen, I shall now explain the brief in e-voting procedure. As you are aware, any shareholder with 50 shares and above, registered in his/her own right, either as shareholder or as first name holder but jointly held in the register of shareholders of the bank for a minimum period of 3 months prior to the date of General Meeting, that is 30 April 2020, and who continues to be a shareholder with a minimum 50 shares in the register of the bank's shareholders as on date of the meeting is eligible to vote on the resolution and will have 1 vote for each block of 50 shares held by him/her. All shareholders entitled to vote as detailed above can cast their vote through remote e-voting. Only those shareholders who are present in the General Meeting through VC/OAVM and who had not cast their vote on the resolution through remote e-voting are eligible to vote through e-voting system provided by NSDL during the General Meeting. NSDL e-voting platform raise the resolution of raising of capital up to INR 20,000 crores. You can cast your vote by selecting appropriate options, that is assent or dissent, verify/modify the number of shares for which you wish to cast your vote and click on Submit and also confirm when prompted on the NSDL platform, www.evoting.nsdl.com. The e-voting will be conducted under the supervision of the Chief General Manager FRT, Polling Supervisor and Chief General Manager, Compliance, the Accounting Supervisor during the General Meeting and will come to an end at 4 p.m. The scrutinizer, M/s Mehta & Mehta, appointed by the Board of Directors. After the conclusion of e-voting, the General Meeting will unblock the remote e-voting and submit the consolidated scrutinizer's report not later than 48 hours of conclusion of the General Meeting to the Chairman or a person authorized by him in writing and who shall countersign the same. Shareholders who have joined the AGM through VC/OAVM and have not casted their vote on the resolutions through remote e-voting may cast their vote now. [Voting]

Agenda 5. I now request the shareholders present here through VC, who may wish to raise questions on the agenda for the meeting, that is raising of capital up to INR 20,000 crores from the market at an opportune time to raise their questions. I would like to state that questions should be brief and confined only to the scope indicated by me. For shareholders who have registered themselves as a speaker till 11 July 2020 by 5 p.m. will only be allowed to express their views/ask questions. The questions will be restricted to agenda of the meeting, that is raising of capital. May I now request General Manager, Shares & Bonds, to announce the name of the speaker/shareholders.

A speaker, Mr. [ Gautam Tiwari ].

Yes. Am I visible and audible, sir?

Yes. Mr. Tiwari, you are audible.

And visible?

Yes.

Am I visible to you, sir?

Yes.

Yes.

Audible. Okay. Sir, Honorable Chairman, sir, Rajnishji, then our [indiscernible], all the [indiscernible] Board of Directors and my fellow shareholders. So good afternoon to you all. So this meeting, which we are conducting, is for raising of the capital of -- raising to the capital of INR 20,000 crore by way of rights issue, QIP, preference issue or FPO. Sir, I would like to strongly urge to you, sir, that please help now retail shareholders who have been deprived of dividend since a long -- even this year also, although we have earned a lot of profit, but due to government protocol of not distributing the profits to shareholders, we have again been deprived, all retail shareholders. So I strongly urge the management to issue, this rights issue should be made available to the retail shareholders at a very good discount and at a good, fair value to retail shareholders in a reasonable way. Sir, this is -- I am very sure the management will consider favorably to this decision because retail shareholders have been left only with this opportunity to gain something from SBI in the process so far. Sir, this -- under the present company scenario of COVID-19 outbreak and COVID-19 crisis, when the Board is facing such an uncertain and sluggish economy and the bank raised more capital -- so that the bank can raise more capital and bank can deploy these more funds for economically -- or economic to bolster it, sir, we strongly support the arraignments for this resolution so that we can use this fund -- the bank can use these funds for economic growth and the employment opportunities and help new entrepreneurs to succeed and financial inclusion as a CSR. Sir, I would like to know the expenses which our bank is likely to incur for raising of this capital of INR 20,000 crores. Sir, when the issue is likely to come, is it after corona effect is totally wiped off or when it is in continuation? Sir, time period which will be required to complete this issue as such. And the fair value, who will be deciding the fair value of this issue? It is better if you can enlighten that. Sir, as far as our company secretarial team is concerned, Mr. Sanjay M. Abhyankar, he is a very humble, hardworking, soft-spoken, caring and helping type of a company secretary, who is always in the best [indiscernible] or best way to help all the shareholders, all the investors. And he is very eager to solve our difficulties or retail shareholders' difficulty any time in the process. Or any time when we reach and approach him, he is very much accessible to us. And we thank the bank management to select such a good secretarial and finance team with this bank. Sir, now coming to a really important point, sir. Sir, we -- all shareholders have been so happy the bank, you were not able to do much for the bank to bring to profit, but you were trying your best efforts. And ultimately, sir, you have succeeded in bringing the bank to the highest profit level in the history of SBI this year. And so we are very much attached to you, and we -- words are not sufficient to compliment to you, sir, for all. So -- and we have got a special attachment with you. So right from the very top of our heart, we wish you -- sir, because you are retiring, we wish you a very happy post-retired life. And at the same time, we would like to request the government of India and their nominees, who are present or who are not present also, to post you somewhere, sir, where the age bar limit is not applicable because your services are very much valuable and you know how to work and how to bring the bank in a good profitable position from its confused or from this sluggish period of time. So we want the government and the bank to make use of your extraordinary potential and your expertise and experience in the future that is also to come. And we are very sure our government nominee must [indiscernible] also listening to us and we will [indiscernible] on the matter. Sir, we wish that the -- hello, sir?

Yes, please.

Sir, we wish the bank a very bright and shiny future ahead. And we are very -- sir, we wish the bank a very bright and shiny future ahead, and we wish you all best in the years to come. Even after your retired life, we are always there with you to support you wholeheartedly. We have supported the resolution. And we wish once again a really bright and shiny future ahead to you, the whole team of management, all investors, stakeholders and the bank as a whole.

We have Mr. [indiscernible]

Thank you, investor.

Sir, directors and shareholders, sir, I also welcome the resolution to raise INR 20,000 crores. And I join my predecessor in saying that you should come with a rights issue. But the rights issue should be priced properly, not like SBI Cards, where the IPO of INR 755 went below INR 500. Sir, I already voted in favor of the resolution. Thank you very much.

Thank you. Thank you, Mr. [indiscernible]