|  |  |  |  | 

Business Exclusive Headlines News

SBI to merge Travancore, Mysore and Bikaner- Jaipur

New Delhi, May 7 ( ): SBI( State Bank of India) will merge State Bank of Bikaner and Jaipur, State Bank of Travancore and State Bank of Mysore with it. SBI has five associate banks under it. The merger will take in the second quarter of the fiscal.

SBI said that the managements of the associate banks have given the nod and soon Government approval will be got. Sometime in July- August this process is expected to start revealed Pratip Chaudri SBI Chairman. SBI experience shows that whenever it merged the associate banks the latter stood to gain. This way SBI too gained and thereby the country’s financial markets. SBI first merger of its associate State Bank of Saurashtra took place in 2008 followed by State Bank of Indore in August 2010.

India’s largest lender has five associate banks –State bank of Travancore , State Bank of Bikaner and Jaipur, , State Bank of Patiala, State bank of Mysore and State Bank of Hyderabad. The three banks chosen for merger are State bank Of Travancore, State Bank of Mysore and State Banks of Bikaner and Jaipur, are all listed companies. SBI deposits from retail was lower by 0.15% from the previous year of 15% growth. During last fiscal advances grew by 21%.

State Bank of India (SBI) biggest non performing loan is towards Kingfisher . It said the consortium of banks has recovered Rs 800-1,000 crore and is moving towards recovering the remaining amount from Kingfisher Airlines. Kingfisher owes SBI and 17 banks around Rs 7000 crore. It has United spirits share as security totalling Rs 500 crore. Srei Infra finance bought another security worth Rs 500 crores held by ICICI bank. The brand Kingfisher is also pledged.

Out of the Rs 7000 crore, SBI has to get Rs 1600 crore from Kingfisher airlines. Punjab National Bank and IDBI has to get Rs 800 crore. This is followed by , Bank of India at Rs 650 crore and Bank of Baroda has Rs 550 crore. Chauduri said that the loan was 100% secured and that the entire amount would be recovered from personal assets and real estate connected to Kingfisher.