Dinesh Khara and SBI’s two missing years
Despite having a tenure without any distractions, and without any new focus area, SBI has somehow stagnated under the present chairman.
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Editor's note: In October 2020, State Bank of India’s current chairman—Dinesh Kumar Khara—took over the reins of the country’s largest public sector lender from his predecessor, Rajnish Kumar. He has now completed two years at the helm. As he completes two years, SBI’s stock price is up about 3x, as of Tuesday’s close. In the same period, the S&P BSE Bankex index is up just 1.8x. And the bank’s nearest rival—private sector lender HDFC Bank—has seen its shares rise just 1.27x during this time. While, on the bourses, the stock of SBI saw massive growth, the actual growth in its business has been a dampener. It has been a laggard in terms of growth in both deposits and advances when compared to HDFC Bank, its closest peer. From September 2020 to June 2022, roughly since Khara took over, The loan book grew 12%, against an industry average of 16% and HDFC Bank’s 34%.Deposits grew 17%, in line with the industry average of 15% and below HDFC Bank’s 31%. First under Arundhati Bhattacharya and then under Rajnish Kumar, India’s largest bank underwent a …
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