In a boost to ease of doing business, State Bank of India (SBI) has revised the service charges on exports.
In a boost to ease of doing business, State Bank of India (SBI) has revised the service charges on exports. The latest move by the largest lender of the country aims to provide about operational convenience and clear visibility of cost structure to the exporters, SBI said in a statement. The revised charges are effective from 1 September 2019, it added. The public sector lender has fixed new charges after taking into consideration the views from different export promotion councils. The revised service charges will be payable upfront once in a year as against existing practice of collecting multiple charges for every transaction.
Export transactions related service charges have been segregated in two major segments — charges for export and credit customers; Charges for Non-Export Credit Customers. These charges are further divided for MSME & Non-MSME customers. The export transactions related service charges for export credit customers have been fixed at 0.1 per cent annually (excluding GST) of export credit limit. It will be charged on pro-rata basis to existing customers till the next renewal of their export credit limit.
The public sector lender said that it expects the new charges will help in improving the exports and help the exporter community as a whole. The bank holds a deposit base of more than Rs 29 lakh crore with CASA ratio of 45.74 per cent and advances of more than Rs 22 lakh crore. The bank accounts for nearly 35 per cent of the market share in home and auto loan segment.
Meanwhile, the SBI has posted a profit of Rs 838.40 crore for the fourth quarter. In the corresponding quarter last year, the bank had posted losses of Rs 7,718.17 crore.