SBI says will gain $120 billion in assets from takeover of units

State Bank of India (SBI), the nation's biggest lender by assets, will gain $120 billion in assets following its merger with associate banks and Bharatiya Mahila Bank, the lender said in a statement on Saturday.

By Reuters  
Sunday, August 21, 2016

State Bank of India (SBI), the nation's biggest lender by assets, will gain $120 billion in assets following its merger with associate banks and Bharatiya Mahila Bank, the lender said in a statement on Saturday.

In a first move to consolidate India's struggling public sector banks, SBI's board on Thursday approved share swap ratio for the proposed takeover of five units that had been run at arms-length, as well as state-run Bharatiya Mahila Bank, a bank for women set up in 2013.

Policymakers want to recapitalise and consolidate India's state-run banks so that they can extend fresh credit and help drive an investment-led recovery in Asia's third-largest economy that is currently getting a boost from state and private consumption.

India's 27 public sector banks account for 70 per cent of its banking sector assets, as well as the lion's share of the country's $120 billion in troubled loans.

SBI said the merger would expand its assets by 36 per cent to about $447 billion.

Related Stories

More PSU mergers likely as govt tries to meet disinvestment target
More PSU mergers likely as govt tries to meet disinvestment target
Indian PSUs eye more oil, gas projects in Russia
Indian PSUs eye more oil, gas projects in Russia
Big wilful defaulters owe Rs 15,175 crore to PNB in July
Big wilful defaulters owe Rs 15,175 crore to PNB in July

Latest Stories

Google launches Neighbourly, targets lucrative Indian market
Google launches Neighbourly, targets lucrative Indian market
New Samsung S10 rumors: Colours, 5G variant, in-display sensor and cheaper model details
New Samsung S10 rumors: Colours, 5G variant, in-display sensor and cheaper model details
Asia stocks fall, oil stymied as growth worries grip global markets
Asia stocks fall, oil stymied as growth worries grip global markets
SPONSORED