Merged SBI entity starts functioning amidst high expectations

0
142

The merger of State Bank of India (SBI) with its five associate banks and Bharatiya Mahila Bank saw major changes across the nation. The combined entity now ranks among the top 50 banking institutions in the world with regards to assets.

SBI
The merged SBI now ranks among the top 50 banks in the world in terms of assets.

All issues pertaining to logistics and asset allocation should be resolved by the third week of April. Shares of SBI traded at Rs.293.85 at the time of writing this piece, a jump of 0.15 per cent over the closing price of Rs.292.60 on Friday.

Shareholders of State Bank of Bikaner and Jaipur (SBBJ) will get 28 SBI shares of Re.1 each for every ten Rs.10 shares of SBBJ. Similarly, shareholders of State Bank of Mysore (SBM), and State Bank of Travancore (SBT) will get 22 SBI shares worth Re.1 each for ten Rs.10 shares.

The new entity will have over 37 crore customers, with the deposit base standing at around Rs.26 lakh crore.

Bank No. of branches No. of staff Total assets (Rs.) Net profit/loss (Rs.)
SBBJ 1,316 13,529 1,10,336 crore 851 crore
SBH 1,700 18,842 1,64,597 crore 1,065 crore
SBM 1,037 10,650 82,975 crore 358 crore
SBT 1,177 14,892 1,14,507 crore 338 crore
SBP 1,300 15,355 1,31,036 crore Loss: 972 crore
SBI (before merger) 16,784 2,10,485 22,59,063 crore 9,951 crore
SBI (post-merger) 23,314 2,83,753 28,62,514 crore 11,590 crore

The merger, however, led to some confusion among customers, with certain sections reporting that the minimum balance should be Rs.5,000. SBI chairman Arundhati Bhattacharya clarified this, stating that the minimum balance requirement of Rs.5,000 is only in the case of the six metros. Other urban branches require a minimum balance of Rs.3,000, while it is Rs.2,000 for semi-urban branches. Customers of rural banks are required to have a minimum balance of Rs.1,000.

LEAVE A REPLY

Please enter your comment!
Please enter your name here