SBI chief teases RBI on teaser loans

After making the State Bank of India technology-savvy and widening its leadership position during his tenure, OP Bhatt, chairman of the country’s largest bank, sounded happy on Wednesday, one day before he ends his tenure.

After making the State Bank of India technology-savvy and widening its leadership position during his tenure, OP Bhatt, chairman of the country’s largest bank, sounded happy on Wednesday, one day before he ends his tenure.

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The senior banker, who turned the state-controlled behemoth into an aggressive player, said that there were still some unfinished items on the agenda on his list.

“I would have loved to merge all the associates of the bank and would have loved to raise more capital but there is no disappointment as we have started it and the process is on,” said Bhatt, who took over as the chairman in June 2006.

Speaking on continuing with teaser rates even after concerns raised by the Reserve Bank of India, Bhatt justified that the teaser rates are in no way risky and is in no way similar to sub-prime. “The regulator has not been able to understand the product,” said Bhatt, adding that there has never been a deviation from any compliance and SBI has been fully compliant with what RBI has said.

Bhatt also said that he is not in favour of de-regulation of savings bank rate.

The outgoing chairman highlighted the fact that the bank has changed a lot for the good and he would like the positive changes to continue in the areas of thought and psychology.