State Bank of India seems to be biting off more than it can chew by merging five associate banks with itself.
Ernakulam district in Kerala is a much sought-after destination for setting up branches by leading banks. Even IDFC Bank, the new kid on the block, was quick to set up an outpost. But the country's largest bank, State Bank of India (SBI), is facing a problem of plenty there.
SBI’S proposed merger with Kerala-headquartered State Bank of Travancore is doubling the bank’s branches in the district to close to 200 overnight.
The merger with five associate banks (plus Bhartiya Mahila bank) will bring similar challenges for SBI in major districts in the country. More so, in states where the associate banks are headquartered – Rajasthan, Karnataka, Andhra Pradesh, Punjab and Kerala.
In fact, the branch gridlock is just one of the many pain points. For instance, the stressed loans of the five associate banks (gross NPAS and restructured loans) add up to a staggering ₹35,396 crore. This amounts to almost half of SBI’S stressed loans portfolio of ₹66,117 crore in 2015/16. In contrast, the deposits, advances and assets of these banks is less than one-fifth of SBI.
Esta historia es de la edición Nov 06, 2016 de Business Today.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición Nov 06, 2016 de Business Today.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
"Outlook for India is very positive"
Paul Uren, Head of Investment Banking (Asia-Pacific), J. P. Morgan, on M&A activity, the environment of investment banking market in India, and more
The 2025 Slate
The Indian film industry is hoping that 2025 will mark the return of big-budget blockbusters
TECH, SET, GO!
With up to 30 tech start-ups looking to go public, the year promises to be a turning point for India's thriving start-up ecosystem
CAUTION AHEAD
A series of events in the first few weeks of the New Year could shape the trajectory of the equity markets, especially the Trump administration's policies
THE GENTLEMAN-SCHOLAR PM
IN EVERY ROLE HE HELD, BE IT FINANCE MINISTER OR PRIME MINISTER, SINGH REMAINED OPEN-MINDED AND CONSTANTLY SOUGHT NEW IDEAS
THE COMPLETE ECONOMIST
THE MANMOHAN SINGH ERA WILL GO DOWN IN HISTORY AS THE ONE THAT CHANGED THE IMAGE OF INDIA, NOT MERELY IN THE ECONOMIC SPHERE, BUT IN EVERY OTHER ASPECT
"Inaction is worse than mistakes"
What was the problem you were grappling with?
TEEING OFF WITH TITANS
BUSINESS TODAY GOLF RESUMES ITS STORIED JOURNEY WITH THE 2024-25 SEASON OPENER IN DELHI-NCR. THERE ARE SIX MORE CITIES TO COME
AI FOOT FORWARD
THE WHO'S WHO OF THE AI WORLD GATHERED AT THE TAJ MAHAL PALACE IN MUMBAI TO DELIBERATE THE TRANSFORMATIVE IMPACT OF AI ON INNOVATION, INDUSTRIES, AND EVERYDAY LIFE.
Decolonising the Walls
ART START-UP MAAZI MERCHANT IS ON A MISSION TO BRING INDIA'S FORGOTTEN ART BACK HOME
