SBI To Earmark 70 Percent Capex For Technology (24-Feb-2010)
State Bank of India (SBI) is focusing more on the upgradation of the technology and for this it would set aside about 60-70 per cent of its annual capex. The technology upgradation, includes increasing reach through ATMs as well as mobile banking and strengthening risk management systems.
According to SBI Chairman O P Bhatt, the spending on the technology could be investments of hundreds of crores and it will be significant and will be 60 or 70 per cent of the annual capex over the next 2-3 years.
However, he did not divulge the details on the average capital expenditure of the bank over the next 2-3 years.
Bhatt said that the bank is reviewing the number of ATMs need to be installed in the next year and want to enrich the mix of ATMs as well as get some micro-ATMs, rural ATMs and bio-metric ATMs.
Moreover, he said that the bank was currently working with telecom operators for a mobile banking initiative like Bharti Airtel and BSNL.
Meanwhile, the bank said that besides installing a system to integrate all modes of payment, it expects to bring on-stream a data warehousing project over the next 18-24 months.
However, Bhatt said that the bank is going to set up a gateway and along with this also integrate all payment modes. He also added that another major area where is the bank is going to invest is the payment systems, which are actually the backbone of banking and finance.
In the meantime, the bank said that it placed most emphasis on strengthening its risk management system as well as wants to bring it on par with those of global multinational companies.
SBI is currently trading at Rs.1917, down by 0.19% at 9.31 AM.
The stock hit an intraday high of Rs.1928 till now, as against the 52-week high of Rs.2500.The stock hit a low of Rs.1910.5 during the day. The stock had hit a 52-week low of Rs.894 on March 9, 2009.
The stock opens at Rs.1925 at BSE. The total traded volume of the scrip on BSE till now stood at 28334.
SBI has an equity capital of Rs 634.88 crore as of 2009 Dec. The face value per share is Rs 10. At the current price of Rs 1917, the P/E multiple stood at 13.3189019127433 with book Value of 912.73 and P/BV at 2.10.
However, O P Bhatt earlier this week had said that as it plans to recruit around 15,000 -20,000 people in FY11, State Bank of India is expected to continue its hiring spree to the next fiscal.
He said that they have recruited 25,000 employees this year and next year it would be around this number and they may recruit around 15,000-20,000 people.
However, in 2008-09, the bank recruited 27,000 staff across various verticals.
Earlier this month, he said that the bank plans to induct around 2,000 probationary officers for rural business in FY10 and it would hire 2,500 probationary officers.
SBI is in the process of inducting 11,000 clerks for marketing, banking and advisory services and 481 officers for marketing and recovery (rural) and technical officers (farm sector).
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