State Bank Of Saurashtra To Be Amalgamated With SBI

Mumbai: State Bank of India, the country''s largest commercial bank, has started the consolidation process with its associate banks. SBI has decided to amalgamate State Bank of Saurashtra, a wholly owned associate bank, with itself. The boards of both SBI and State Bank of Saurashtra have given an in-principle clearance to the amalgamation proposal. SBI will now have to get permissions from both the Government, the majority owner of the bank holding 59.73 per cent stake, and the Reserve Bank of India.

The merger would enhance the capital and the balance sheet of SBI. State Bank of Saurashtra is the smallest among the seven associate banks of SBI, in terms of networth. The other six associates are State Bank of Travancore, State Bank of Mysore, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Indore and State Bank of Patiala. SBI''s controlling interests in the associate banks range from 75 per cent to 100 per cent. SBS registered a net profit of Rs 87.4 crore in 2006-07, a jump of 45.4 per cent from Rs 60.1 crore in the previous year. The bank has paid-up equity capital of Rs 314 crore. SBS'' total deposits stood at Rs 15,804 crore while total advances were at Rs 11,081 crore.

Source : www.indian-commodity.com