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 Mysore(SBM) Q3 result, posts loss of Rs 20 cr

State Bank of Mysore(SBM), an SBI associate, today reported a loss of Rs 20.25 crore for the quarter ended December 31, on higher provisioning. 

The bank's net profit during the corresponding quarter in 2015-16 was Rs 26.94 crore. 


Total income increased to Rs 1,978.85 crore during the reported quarter from Rs 1,940.22 crore earned in the year ago period, the bank said in a BSE filing. 

During the October-December quarter of 2016-17, the bank made provisioning and contingencies to the tune of Rs 384.85 crore as against Rs 253.91 crore in the previous fiscal. 

The gross non-performing assets (NPAs) were at 14.46 per cent of the gross advances as of December 31, as against 5.48 per cent in last fiscal. 

Net NPAs or bad loans stood at 9.22 per cent of net advances, slightly up from 3.12 per cent a year ago.
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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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State Bank of Mysore Q1 Results, posts Rs 472 crore loss

State Bank of India (SBI) associate State Bank of Mysore (SBM) slipped into losses at Rs.471.88 crore in the first quarter on mounting bad loans, resulting into over sevenfold jump in provisions.

The bank posted a net profit of Rs.94.07 crore during the corresponding April-June quarter of the previous fiscal.

Provision for bad loans zoomed to Rs.1,037.78 crore, more than 7.8 times from Rs.131.89 crore parked aside a year ago, showed the bank’s balance sheet filed with BSE.

Total income increased marginally to Rs.1,987.63 crore during the June quarter from Rs.1,951.65 crore a year ago. SBM’s gross non-performing asset (NPAs) or bad loans almost doubled at 7.83% of gross advances as of June 2016, from 4.21% at the end of June 2015.

In absolute terms, the gross NPAs surged to Rs.4,323.14 crore from Rs.2,213.62 crore. Similarly, net NPAs also jumped to 4.65% of net advances as of June, up from 2.10% a year ago.

In volume terms, net NPAs were Rs.2,479.93 crore as against Rs.1,076.56 crore. Classification of stressed assets under the Reserve Bank of India’s (RBI) asset quality review (AQR) guidelines has been eating into most of public sector lender as they have to keep a higher reserves to against non-performing loans.
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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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State Bank of Mysore Q4 profit down 23% at Rs 105 cr

SBI associate State Bank of Mysore today reported a fall of 22.9 per cent in net profit at Rs 104.86 crore for the fourth quarter ended March 31, due to higher provisioning for employee cost and rising bad loans. 

SBM's net profit in the corresponding quarter of 2014-15 stood at Rs 135.97 crore. Total income of the bank was Rs 2,076.02 crore during the final quarter of 2015-16, slightly up from Rs 2,051.23 crore in the same period of the corresponding previous fiscal, SBM said in a regulatory filing. 

Provisions and contingencies worth Rs 263.42 crore were parked aside during the quarter as against Rs 184.49 crore in the year ago period. 

Bank's asset quality slipped further during the quarter with gross non-performing assets (NPAs) rising to 6.56 per cent of gross advances as on March 31, as against 4 per cent a year ago. Likewise, net NPAs or bad loans were 4.18 per cent of the net advances, up from 2.16 per cent in the year ago period.
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State Bank of Mysore Q3 Profit Dips 72%


BI associate State Bank of Mysore on Wednesday reported a dip of 71.98 per cent in net profit at Rs 26.94 crore for the quarter ended December 31, on higher provisioning and employee cost.


The bank's net profit during the corresponding quarter in 2014-15 was Rs 96.16 crore.



Total income increased by a marginal 2.8 per cent to Rs 1,940.22 crore during the reported quarter from Rs 1,888.11 crore earned in the year ago period, the bank said in a BSE filing.



During the October-December quarter of 2015-16, the bank made provisioning and contingencies to the tune of Rs 253.91 crore as against Rs 135.99 crore in the previous fiscal.
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History of State Bank of Mysore

State Bank of Mysore was a nationalised bank in India, with headquarters at Bengaluru. It is one of the five associate banks of State Bank of India.
State Bank of Mysore was established in the year 1913 as The Bank of Mysore Ltd. under the patronage of Maharaja Krishna Raja Wadiyar IV, at the instance of the banking committee headed by the great Engineer-Statesman, Bharat Ratna Sir M.Visvesvaraya. During 1953, "Mysore Bank" was appointed as an agent of Reserve Bank of India to undertake Government business and treasury operations, and in March 1960. 
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