SBI to complete merger of 6 banks in three months


State Bank of India, which would start merger process of five associates and Bharatiya Mahila Bank (BMB) from April 1, expects integration to be completed in three months. 

"SBI has sought three-month time from RBI for merger. It should be done by that timeframe," SBI Managing Director (national banking group) Rajnish Kumar said here. "The merger has to be done in phases. As data are integrated, the new passbook and cheque books would be issued. The complete integration of various banks should take 3 months," he said. 
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SBI to merge with associates from 1st April

The government on Thursday said that 1 April will be the record date for the merger of State Bank of India (SBI) with five of its associate banks.The associate banks are State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT), State Bank of Hyderabad (SBH) and State Bank of Patiala (SBP).
In a gazette notification dated 22 February and released on Thursday, the government said that all shares of these associate banks would cease to exist as individual entities and would stand transferred to SBI.
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State Bank of Bikaner and Jaipur(SBBJ) Q3 result, net profit falls 71.94%

State Bank of Bikaner and Jaipur(SBBJ) on Friday reported a 71.94% decline in its net profit for the December quarter due to increase in provisions. Net profit for the December quarter reduced to Rs57.84 crore as compared to Rs206.13 crore a year ago.
Net interest income (NII), or the core income a bank earns by giving loans, declined by 21.16% to Rs685.16 crore in the December quarter from Rs869.09 crore last year.
Other income increased 67.96% to Rs383.54 crore in the third quarter from Rs228.34 crore in the same period last year.

Gross non-performing assets (NPAs) at the bank rose 3.23% to Rs7,917.35 crore at the end of the December quarter from Rs7,669.21 crore in the September quarter. As a percentage of total loans, gross NPAs were at 11.19% at the end of the December quarter as compared to 10.50% in the previous quarter and 4.22% in the year-ago quarter.
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SBI pushes merger of 5 associate banks,Bharatiya Mahila Bank to next quarter

The merger of the five associate banks with State Bank of India (SBI) will be postponed to by a quarter due to the demonetization exercise, acknowledged SBI chief Arundhati Bhattacharya who for weeks had said that the merger is as per the schedule. The bank had announced in May plans to merge its five associate banks with itself by March 2017 to emerge as a global bank in order to compete with peers in emerging markets. 


Speaking to media on Monday on whether the merger of associate bank is as per the schedule, Bhattacharya said that the merger will “probably be delayed by a quarter”. She said that the delay has been because the government has not notified the merger. 


“The reason is we still have to get government approval. Even if I get the approval right now doing things in the last quarter is not a wise thing. There will be a lot of IT system changes and normally by mid-February we close down all IT system changes as these can impact something else quit unknowingly. We do not want to take any risks at the annual closing time. So we may just want to do the annual closing then look at it,” she said. 
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SBBJ Q2 result, Posts loss of Rs210.10 crore as NPAs jumps

State Bank of Bikaner and Jaipur (SBBJ) on Friday posted a net loss for the September quarter due to higher provisioning towards bad loans. The bank may have posted an even bigger loss if there was no ta
x write-back. This was the second consecutive quarter when the bank posted a loss.
Net loss for the quarter stood at Rs210.10 crore as compared to net profit of Rs180.63 crore a year ago. The bank posted a net loss of Rs221.56 crore in the June quarter
Tax write-back for the quarter stood at Rs116.51 crore as against tax expenses of Rs93.12 crore.
Net interest income (NII), or the core income a bank earns by giving loans, fell 5.07% to Rs776.60 crore in the September quarter from Rs818.05 crore last year.
Other income increased 37.09% to Rs287.69 crore from Rs209.86 crore in the same period last year.
Gross non-performing assets (NPAs) at SBBJ rose 67% to Rs7669.21 crore at the end of the September quarter from Rs4592.87 crore in the June quarter. On a year-on-year basis, gross NPAs jumped 161.25% from Rs2,935.62 crore. As a percentage of total loans, gross NPAs stood at 10.5% at the end of the September quarter as compared to 4.2% in the previous quarter and 6.2% in the year-ago quarter.
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State Bank of Bikaner and Jaipur (SBBJ) Q1 Result, Reported loss

State Bank of Bikaner and Jaipur (SBBJ) has reported loss of Rs.221.56 crore in the fiscal first quarter because of higher provisions.
The state-run bank reported a net profit of Rs.270.62 crore in the year-ago quarter. The loss was restricted because of a tax write back of Rs.118.16 crore in the quarter ended 30 June compared with a tax expenses of Rs.142.23 crore a year ago.
This is the first time since June 1997 the bank has reported a quarterly loss, according to Capitaline data.
In December, Reserve Bank of India (RBI) conducted an asset quality review across the banking sector, following which the banks were asked to recognize visibly stressed assets as non-performing assets (NPAs). RBI also asked banks to make adequate provisions for the stressed assets. This has hit the profitability of some banks.
Gross NPAs at SBBJ rose 27.5% to Rs.4,592.87 crore at the end of the June quarter from Rs.3,602.76 crore in the March quarter. On a year-on-year basis, gross NPAs jumped 46.6% from Rs.3,133.39 crore. As a percentage of total loans, gross NPAs stood at 6.2% at the end of the June quarter as compared to 4.82% in the previous quarter and 4.45% in the year-ago quarter.
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Bankers to strike against merger of SBI associates

Opposing the central government's decision to merge State Bank of India's (SBI) five associate banks with the former, around 45,000 employees of the associate banks will strike on July 12, said a top official.

The All India Bank Employees'Association (AIBEA) official said that on July 13, there will be a nationwide strike in all banks by AIBEA and All India Bank Officers' Confederation (AIBOC).

"Consolidation in the banking industry is not a priority now. On the other hand, recovery of the bad loans should be the priority. Prior to the July 12 strike we will hold series of demonstrations opposing the merger," CH Venkatachalam, general secretary, AIBEA told IANS.
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SBI merger to create banking powerhouse

In a definitive push for consolidation in the banking sector, the Union Cabinet on Wednesday gave a go-ahead to the of State Bank of India (SBI) with its five associate lenders and Bharatiya Mahila Bank. The combined entity would create a financial sector powerhouse, with total assets worth Rs 29.7 lakh crore.

has indicated it wants to complete the merger in 2016-17. While India's largest lender would reap benefits of scale and a larger balance sheet, it will be a major challenge to integrate staff and rationalise branches.
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Cabinet approves merger of 5 associate banks with SBI

The Union Cabinet on Wednesday approved the merger of five associate banks — State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad as well as Bharatiya Mahila Bank with State Bank of India, according to TV reports.


Last month, SBI cleared proposal for merger of subsidiary banks and Bharatiya Mahila Bank.


“Kindly await a structured briefing on that,” Telecom Minister Ravi Shankar Prasad said when asked if the Cabinet approved the merger of associate banks with the SBI.
Arundhati Bhattacharya, chairman, SBI said, “The merger of SBI and its associate banks is a win-win for both. While the network of SBI would stand to increase, its reach would multiply. One can expect efficiencies to be created from rationalisation of branches, common treasury pooling and proper deployment of a large skilled resource base. Currently, no Indian bank features in the top 50 banks of the world. With this merger, some visibility at global level is likely to increase. Customers of associates and subsidiaries of the bank will also be beneficiaries.”
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SBBJ profit tanks 31% in Q4 on higher bad loan provisions

State-run State Bank of Bikaner and Jaipu r (SBBJ) today reported a 31.05 percent plunge in net profit to Rs 193.22 crore for the quarter ended March 31, due to increased provisions for bad loans. 

The bank had posted a profit of Rs 280.25 crore in the same period last year. "In the fourth quarter, we doubled the provisions for loans compared with the corresponding quarter last year," the bank's managing director Jyoti Ghosh told reporters here. 

 The loan-loss provision stood at Rs 296 crore during the period compared with Rs 141 crore a year ago. The associate of the State Bank of India has an exposure of Rs 400 crore to the Punjab government food credit and as per the RBI instructions it has made a provision of 7.5 percent or Rs 31 crore during the quarter. 
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History of State Bank of Bikaner & Jaipur (SBBJ)

State Bank of Bikaner & Jaipur (SBBJ) was a major Indian bank. It was a subsidiary of State Bank of India, with which it was merged in 2017. As of 2015, SBBJ had 1,360 branches, mostly located in the state of RajasthanIndia. Its branch network out of Rajasthan covers all the major business centers of India. In 1997, the bank entered the capital market with an Initial Public Offering of 13,60,000 shares at a premium of Rs 440 per share. For the year 2015-16 the net profit of the company was 850.60 Crore.
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