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Last week, Prime Minister Narendra Modi met senior finance ministry officials and got aware of rising bad loans at <keyword id="488657" type="UNKNOWN" weightage="100" keywordseo="state-run-banks">state-run banks</keyword>. 
Some of these banks have announced that they could not get desired third-quarter results because they were pushed by RBI to set aside money so that bad loans can be covered and their books can be cleaned up. 
 
READ: <a href="http://www.businessinsider.in/Banks-will-be-restored-to-health-by-March-2017-says-Raghuram-Rajan/articleshow/50958108.cms">Banks will be restored to health by March 2017, says Raghuram Rajan</a> 
 
"The prime minister was apprised of the situation. It is not that grave as it is made out to be," a senior government official told ET. "We are hopeful that as the bankruptcy law gets passed, financial institutions will have more teeth to rein in defaulters." 
 
Capital requirements of state-run banks and the impact of bad loans on their profitability were also the topics of discussion in the meeting. 
 "The government is committed to adequately capitalise PSBs (public sector banks)," he said. "It is expected that the last quarter of this fiscal will also see some more rise in bad loans because of <keyword id="6354335" type="CITY" weightage="100" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword>'s asset quality review (AQR)." 
 
The government has already committed Rs 70,000 crore to be given till FY19 for bank recapitalisation, and the amount can be increased if required, said the official. 
 
READ: <a href="http://www.businessinsider.in/Indias-largest-banks-profits-after-tax-slipped-by-61-in-Q3/articleshow/50945240.cms">India’s largest bank’s profits after tax slipped by 61% in Q3!</a> 

<a href="http://blogs.timesofindia.indiatimes.com/wp-content/uploads/2015/06/narendra-modi-new.jpg">Image source</a>

State-run banks brief PM Modi about rising bad loans

Employees of <keyword id="6354731" type="CITY" weightage="80" keywordseo="State-Bank-Of-India">State Bank of India</keyword>'s associate banks, including State Bank of Mysore, State Bank of Patiala, State Bank of Travancore and <keyword id="143585" type="COMPANY" weightage="80" keywordseo="State-Bank-of-Hyderabad">State Bank of Hyderabad</keyword> went on a one-day <keyword id="6358138" type="UNKNOWN" weightage="60" keywordseo="Strike">strike</keyword> on Thursday. They are protesting against the decision to merge these banks with the SBI permanently. The employees demanded filling up of vacancies, increasing the number of staff in the <keyword id="157757" type="UNKNOWN" weightage="80" keywordseo="housing-loan">Housing loan</keyword> section and extending the compassionate ground appointments to associate banks, a PTI report said. 
		 
	
		The SBI associate banks employees also warned the management that they would go for a nationwide strike on June 24 if their demands are not fulfilled. They want the management to find a solution soon. 
		 
	
		Recently, talks were held in Delhi over the matter, but failed to reach a conclusion. This prompted the unions to call for the strike. The <keyword id="6452174" type="ORGANIZATION" weightage="80" keywordseo="All-India-Bank-Employees-Association">All India Bank Employees Association</keyword> claimed that 50,000 employees participated in the strike today. 
	(Image: Indiatimes)

SBI's associate banks employees on strike today

<ul><li>The <keyword id="6354335" type="COMPANY" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> had put a <keyword id="117489" type="PERSON" weightage="20" keywordseo="moratorium">moratorium</keyword> on <keyword id="45660" type="COMPANY" weightage="20" keywordseo="Yes-Bank">Yes Bank</keyword>, imposed withdrawal restriction of Rs 50,000 only till April 3. </li><li>The bank has now said that its ATMs are fully up now and customers can withdraw the stipulated amount from other banks' ATMs as well. </li><li>As per the RBI's draft reconstruction scheme, <keyword id="6354731" type="DOMAIN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword> will pick up 49 per cent stake in the crisis-ridden Yes Bank.</li></ul>Crisis-hit Yes Bank said on Tuesday that customers could now make payments towards their credit card and loans through other bank accounts, days after prominent banking services were curtailed after the RBI imposed moratorium on the lender. The announcement comes as panic gripped the bank's customers, who queued before ATMs and bank branches to withdraw money. They were also not even able to access Internet banking and other services like digital payments through another party's platform. Forex services and credit card purchases, among others, were also impacted. "Inward IMPS/NEFT services have now been enabled," Yes Bank tweeted. "You can make payments towards YES Bank credit card dues and loan obligations from other bank accounts. Thank you for your co-operation." The Reserve <keyword id="6355303" type="DOMAIN" weightage="20" keywordseo="bank-of-india">Bank of India</keyword> had put a moratorium last Thursday on the cash-strapped Yes Bank, imposed withdrawal restriction of Rs 50,000 only till April 3 and superseded its board through appointment of an administrator. However, the bank has now said that its ATMs are fully up now and customers can withdraw the stipulated amount from other banks' ATMs as well. During the moratorium period, Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment. As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan by infusing capital of Rs 2,450 crore. The bank's financial health is not sound as it has failed to raise enough capital under the new leadership of Ravneet Singh Gill, who took charge as the managing director and CEO from March last year. Troubles at new-generation private sector started brewing up ever since the the Reserve Bank denied extension to its co-founder Rana Kapoor -- who now is in the custody of the Enforcement Directorate on charges of financial mismanagement and money-laundering -- to continue as MD and CEO in September 2018, and had asked the lender to find a new successor. Yes Bank's administrator, Prashant Kumar, a former SBI executive, had on Friday assured customers that the moratorium period could end by this weekend.

Yes Bank says credit and loan payments can be made via other bank accounts

The <keyword id="6354731" type="DOMAIN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword> (<keyword id="13222" type="DOMAIN" weightage="20" keywordseo="SBI">SBI</keyword>) here on Wednesday reduced the marginal cost of funds-based lending rate (<keyword id="6376846" type="PERSON" weightage="20" keywordseo="mclr">MCLR</keyword>) by 10-15 basis points across tenors. "The one-year MCLR comes down to 7.75 per cent from 7.85 per cent with effect from March 10, 2020. It's the tenth consecutive cut in MCLR in FY20," the country's largest lender said in a statement. With this, the equated monthly instalments (EMIs) on home loans linked to MCLR will get cheaper by around Rs 7 per Rs 100,000 on a 30-year loan. EMIs on car loans will come down by Rs 5 per Rs 100,000 on a 7-year loan. In view of adequate liquidity in the system, the SBI has realigned the interest <keyword id="6375571" type="UNKNOWN" weightage="20" keywordseo="rates">rates</keyword> on term deposits as of March 10, 2020. The retail term deposit rates have been reduced by 10 bps for one year and above tenor, and 50 bps for up to 45 days. The bulk term deposit rates have been reduced by 15 bps for 180 days and above tenors. --IANS rv/pcj

SBI cuts interest rates making home and car loans cheaper

The finance ministry has asked four large <keyword id="44530" type="COMPANY" weightage="20" keywordseo="PSU">PSU</keyword> lenders to explore opportunities for acquisition of small and mid-sized banks with a goal to create global sized lenders, sources told PTI. One of the possibilities is that large public sector banks (PSBs) like Punjab National Bank, Bank of Baroda, Canara Bank and Bank of India could try looking for potential candidates for acquisition, they said. So, informally, the finance ministry has sounded them that they should study the possibility for mergers and acquisitions so as to acquire scale and size of <keyword id="6354731" type="CITY" weightage="20" keywordseo="State-Bank-Of-India">State Bank of India</keyword> (<keyword id="13222" type="CITY" weightage="20" keywordseo="SBI">SBI</keyword>), the sources added. There are factors like regional balance, geographical reach, financial burden and smooth human resource transition that have to be looked into while taking a merger decision, they said, adding there should not be merger of a very weak bank with a strong one "as it could pull the latter down". However, the clear picture would emerge only after the Niti Aayog report sets the tone and tenure of the roadmap for the second round of consolidation in the banking sector. In the last consolidation drive, five associates and Bharatiya Mahila Bank (BMB) became part of SBI on April 1, 2017, catapulting the country's largest lender to among the top 50 banks in the world. <keyword id="229649" type="COMPANY" weightage="20" keywordseo="State-Bank-of-Bikaner">State Bank of Bikaner</keyword> and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), <keyword id="4376212" type="COMPANY" weightage="20" keywordseo="State-Bank-of-Patiala">State Bank of Patiala</keyword> (SBP) and <keyword id="6560713" type="COMPANY" weightage="20" keywordseo="State-Bank-of-Travancore">State Bank of Travancore</keyword> (SBT), besides BMB, were merged with SBI. With the merger, the total customer base of the SBI reached around 37 crore with a branch network of around 24,000 and nearly 59,000 ATMs across the country. The merged entity began operation with deposit base of more than Rs 26 lakh crore and advances level of Rs 18.50 lakh crore. The government in February had approved the merger of these five associate banks with SBI. Later in March, the cabinapproved merger of BMB as well. SBI first merged State Bank of Saurashtra with itself in 2008. Two years later, State <keyword id="269823" type="COMPANY" weightage="20" keywordseo="Bank-of-Indore">Bank of Indore</keyword> was merged with it. Enthused by the success of SBI merger, the finance ministry is considering clearing another such proposal in the public sector banking space by this fiscal-end. Another round of merger should kick off once the non- performing assets (NPAs) situation improves. Toxic loans of public sector banks rose by over Rs 1 lakh crore to Rs 6.06 lakh crore during April-December of 2016-17, the bulk of which came from power, steel, road infrastructure and textile sectors.

This is why the Finance Minister wants to acquire more small and mid-sized banks

The <keyword id="6354731" type="CITY" weightage="100" keywordseo="State-Bank-Of-India">State Bank of India</keyword> (SBI) Managing Director (MD) and <keyword id="2426526" type="UNKNOWN" weightage="100" keywordseo="VG-Kannan">VG Kannan</keyword> has said that the five <keyword id="1250737" type="UNKNOWN" weightage="100" keywordseo="associate-banks">associate banks</keyword> of SBI do not need any additional capital in this financial year as the credit growth is low. “As of now, we are comfortable in terms of capital. No plans of raising funds as of now. There is no credit growth in the market,” he said. 
 
Kannan, who is also the group executive for SBI associates and subsidiaries, added that the that the five associates — State Bank of Mysore, State Bank of Patiala, State Bank of Travancore, State Bank of Hyderabad and State Bank of Bikaner and Jaipur — would collectively require a capital of about Rs 30,000 crore in the next five years. 
 He further said that bond markets and money markets have taken account of a rate cut by the <keyword id="6354335" type="CITY" weightage="60" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> already and are moving accordingly at present. “There’s a lot of liquidity in the system and market feels that inflation has also appeared to be benign. So bond markets have factored in an interest rate cut. Deposit rates are coming down. Rates on commercial papers have come down,” he said.

Associate Banks Don’t Require Additional Capital: SBI

The finance ministry has initiated the process for finding new chief of the country's largest lender <keyword id="6354731" type="CITY" weightage="20" keywordseo="State-Bank-Of-India">State Bank of India</keyword> (<keyword id="13222" type="CITY" weightage="100" keywordseo="SBI">SBI</keyword>) as Arundhati <keyword id="721" type="PERSON" weightage="100" keywordseo="Bhattacharya">Bhattacharya</keyword>'s extended term comes to an end on October 6, according to PTI. "Department of Financial Services has communicated to Banks Board Bureau the emerging vacancies at the top level of <keyword id="44530" type="COMPANY" weightage="20" keywordseo="PSU">PSU</keyword> banks which will have to be filled during course of the year," a senior finance ministry official said. This also includes chairman and one managing director of the SBI, which alone has markshare of more than 20 per cent. Bhattacharya will complete her four-year term as chairperson of SBI on October 6. Besides chairman, SBI has four managing directors looking after different departments. The post assumes significance as the bank has recently merged five associates and the Bharatiya Mahila Bank (<keyword id="423104" type="ORGANIZATION" weightage="20" keywordseo="BMB">BMB</keyword>) pushing SBI into the league of top 50 banks globally in terms of assets. State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and <keyword id="6560713" type="COMPANY" weightage="20" keywordseo="State-Bank-of-Travancore">State Bank of Travancore</keyword> (SBT), besides BMB, merged with SBI with effect from April 1. The process of integration would at least take a year. The government had in February approved the merger of these five associate banks with SBI. Later in March, the Cabinet approved merger of BMB as well. SBI first merged <keyword id="82725" type="COMPANY" weightage="20" keywordseo="State-Bank-of-Saurashtra">State Bank of Saurashtra</keyword> with itself in 2008. Two years later, State <keyword id="269823" type="COMPANY" weightage="20" keywordseo="Bank-of-Indore">Bank of Indore</keyword> was merged with it. For the fourth quarter ended March 2017, the bank reported more than doubling of its net profit on the back of increased lending and reduction in provisioning for bad loans. Net profit of the bank on standalone basis rose to Rs 2,814.82 crore for the March quarter as against Rs 1,263.81 crore in the same period of previous fiscal 2015-16. For the entire fiscal ended March 2017, the net profit of the bank improved by 5.36 per cent to Rs 10,484 crore as against Rs 9,951 crore in the previous fiscal. With stock prices inching up, SBI has lined up share sale through which it intends to raise Rs 15,000 crore during the current fiscal. It is in the process of appointing six merchant bankers for managing its proposed share sale. The central government holds 62.22 per cent stake in the bank as of March 2017.

Who is becoming SBI’s new chief after Bhattacharya?

The graph of Non-Residents (NRs) deposits in Kerala banks is going up every year. The latest report by the <keyword id="440695" type="ORGANIZATION" weightage="20" keywordseo="State-Level-Bankers-Committee">State Level Bankers Committee</keyword> (SLBC) revealed that current year’s deposits have been the maximum in the past few years, crossing Rs 1 lakh crore. 
 
As per a report appeared in Economic Times, deposits of NRs in Kerala banks have crossed Rs.1 lakh crore in the last financial year from Rs 66,190 crore in March 2013 to Rs.93,883 crore by March 31, 2014, and further to Rs 1,09,603 crore in the last fiscal. 
 Kerala’s <keyword id="6560713" type="COMPANY" weightage="20" keywordseo="State-Bank-of-Travancore">State Bank of Travancore</keyword> (SBT) has been leading with a deposit amount of Rs.26, 613 crore by the state's immigrants, followed closely by <keyword id="6356495" type="COMPANY" weightage="20" keywordseo="Federal-bank">Federal Bank</keyword> with Rs.23, 214 crore. <keyword id="160270" type="CITY" weightage="20" keywordseo="The-State-Bank-of-India">The State Bank of India</keyword> was listed with a total <keyword id="2912959" type="UNKNOWN" weightage="20" keywordseo="NR-deposit">NR deposit</keyword> of Rs.14, 456 crore. 
 
It is noteworthy that the NR deposits in all 21 nationalised banks in the state add up to Rs.23,203 crore, which is less than such deposits with the SBT and the Federal Bank considered separately. 
 
Going by the figures quoted in the report, a total bank deposits in Kerala in the last fiscal stood at Rs.3,19,890 crore, up from Rs.2,79,655 crore in March 2014, while the total advances extended by these banks grew from Rs.1,92,010 crore in March 2014 to Rs.2,18,706 crore in the last fiscal.

Kerala banks’ NR deposit breaks record; reaches 1 lakh crore

India’s largest lender <keyword id="6354731" type="CITY" weightage="100" keywordseo="State-Bank-Of-India">State Bank of India</keyword> (<a href="http://www.businessinsider.in/SBI-aims-for-unbanked-rural-India-for-business-correspondent-model/articleshow/53315581.cms">SBI</a>) has approved the merger of its operations with six associate banks, viz. <keyword id="6560713" type="COMPANY" weightage="100" keywordseo="State-Bank-of-Travancore">State Bank of Travancore</keyword>, <keyword id="4376211" type="COMPANY" weightage="100" keywordseo="State-Bank-of-Mysore">State Bank of Mysore</keyword>, <keyword id="4376209" type="UNKNOWN" weightage="100" keywordseo="State-Bank-Of-Bikaner-and-Jaipur">State Bank of Bikaner and Jaipur</keyword>, <keyword id="143585" type="COMPANY" weightage="100" keywordseo="State-Bank-of-Hyderabad">State Bank of Hyderabad</keyword>, <keyword id="4376212" type="COMPANY" weightage="100" keywordseo="State-Bank-of-Patiala">State Bank of Patiala</keyword>, and Mahila Bank. 
 It was in June that the centre had given the go-ahead to merge <keyword id="13222" type="CITY" weightage="100" keywordseo="SBI">SBI</keyword> with five of its associate lenders and <keyword id="6560712" type="UNKNOWN" weightage="100" keywordseo="Bharatiya-Mahila-Bank">Bharatiya Mahila Bank</keyword>, thus increasing the chances of it breaking into the top 50 list of Bloomberg's largest bank by asset ranking. 
 
Marking the first ever large-scale consolidation in the Indian banking industry, the merger will result in SBI becoming a huge banking entity with an asset book of Rs 37 lakh crore. 
 
Also read: <a href="http://www.businessinsider.in/SBI-directs-associate-banks-to-clean-up-books-before-merger/articleshow/53611963.cms">Clean up books before merger, SBI directs associate banks</a> 
 
As per the terms of the merger, SBI will give 28 of its shares for every 10 shares held of State Bank of Bikaner and Jaipur, while for every 10 shares held of State Bank of Mysore as well as State Bank of Travancore, it will give 22 of its shares. 
 
For for every 100 crore equity shares of Bhartiya Mahila Bank, SBI will be giving 4,42,31,510 shares with face value of Re. 1. 
 
Also read: <a href="http://www.businessinsider.in/SBI-Chairman-blames-stalled-projects-for-Indian-banking-sector-stress/articleshow/53080413.cms">Stalled projects from 2011 to 13 have put Indian banking sector into stress, says SBI Chairman</a> 
 
Comparing post-merger SBI with India’s second largest bank <a href="http://www.businessinsider.in/At-745-million-this-ICICI-Pru-Life-IPO-is-Indias-biggest-in-six-years/articleshow/53265064.cms">ICICI</a>, its asset base will become five times as big as ICICI’s. 
 
<a href="http://3.bp.blogspot.com/_NfBLGD5BAo8/TVOzs86G8WI/AAAAAAAAASE/H6PHjHGPWcY/s1600/IMG_1930.JPG">Image source</a>

Six banks are going to merge into SBI

Government is considering giving a one-year extension to <keyword id="13222" type="CITY" weightage="100" keywordseo="SBI">SBI</keyword> chief <keyword id="6379603" type="PERSON" weightage="100" keywordseo="Arundhati-Bhattacharya">Arundhati Bhattacharya</keyword> amid the lender's consolidation with its associate banks. 
 
"There is a need for continuity at a time when the process of consolidation is going on," sources told an agency. 
 
In this regard, the government is looking at the proposal of granting extension to the current chairperson whose three-year term comes to an end this month, sources added. 
 The government has also received views of the <keyword id="2748088" type="UNKNOWN" weightage="20" keywordseo="Bank-Board-Bureau">Bank Board Bureau</keyword> (BBB) on the extension issue and an order in this regard is expected in the next few days, according to the news agency. 
 Earlier this year, the <keyword id="6355513" type="ORGANIZATION" weightage="20" keywordseo="cabinet">Cabinet</keyword> gave its nod for the merger of <keyword id="6354731" type="CITY" weightage="20" keywordseo="State-Bank-Of-India">State Bank of India</keyword> (SBI) and its associate lenders and <keyword id="6560712" type="UNKNOWN" weightage="20" keywordseo="Bharatiya-Mahila-Bank">Bharatiya Mahila Bank</keyword> (<keyword id="423104" type="ORGANIZATION" weightage="20" keywordseo="BMB">BMB</keyword>) that would make the state-owned lender a global-sized bank. 
 SBI has five associate lenders -- <keyword id="229649" type="COMPANY" weightage="20" keywordseo="State-Bank-of-Bikaner">State Bank of Bikaner</keyword> and Jaipur, <keyword id="6560713" type="COMPANY" weightage="20" keywordseo="State-Bank-of-Travancore">State Bank of Travancore</keyword>, State Bank of Patiala, State Bank of Mysore and <keyword id="143585" type="COMPANY" weightage="20" keywordseo="State-Bank-of-Hyderabad">State Bank of Hyderabad</keyword>. 
 
Among the associate banks, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed. 
 
The merged entity will become a banking behemoth, which could compete with the largest in the world, with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over USD 555 billion, 22,500 branches and 58,000 ATMs. It will have over 50 crore customers. 
 
SBI had said that all its associate banks and BMB will be merged into it that will add an additional Rs 8 lakh crore to its assets. 
Presently, SBI has close to 16,500 branches, including 191 foreign offices across 36 countries. 
 SBI first merged <keyword id="82725" type="COMPANY" weightage="20" keywordseo="State-Bank-of-Saurashtra">State Bank of Saurashtra</keyword> with itself in 2008. Two years later, State <keyword id="269823" type="COMPANY" weightage="20" keywordseo="Bank-of-Indore">Bank of Indore</keyword> was merged with it.

SBI chief Arundhati Bhattacharya may serve for another year

State-owned banks in India might receive an investment of $3 billion this fiscal as the government plans to help re-capitalise the sector and allow it to meet Basel III rules. 
 <keyword id="46929" type="POSITION" weightage="20" keywordseo="Finance-secretary">Finance Secretary</keyword> <keyword id="1928895" type="PERSON" weightage="20" keywordseo="Rajiv-Mehrishi">Rajiv Mehrishi</keyword>, who is accompanying <keyword id="6355261" type="POSITION" weightage="20" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> on a US visit seeking more <keyword id="6362476" type="ORGANIZATION" weightage="20" keywordseo="investments">investments</keyword> informed about the developement. Mehrishi also said that India might potentially inject an amount of $6 billion next year. 
 "What we are aiming at is an infusion of about $3 billion in the current year and perhaps twice as much in the next year,” said the <keyword id="25455" type="ORGANIZATION" weightage="20" keywordseo="finance">Finance</keyword> secretary. 
 
A report published in Economic Times says that the intended injection into state banks is significantly higher than the estimate of 79.4 billion rupees ($1.25 billion) given in the government's budget for this fiscal year. 
 
The Finance secretary also informed that India could also finance the increased injection amount through supplemental funding that is available to the government outside the budget.

You Searched For "State Bank of India news" and got 11 results

State-run banks brief PM Modi about rising bad loans

BI India Bureau

SBI's associate banks employees on strike today

BI India Bureau

Yes Bank says credit and loan payments can be made via other bank accounts

PTI

SBI cuts interest rates making home and car loans cheaper

IANS

This is why the Finance Minister wants to acquire more small and mid-sized banks

BI India Bureau

Associate Banks Don’t Require Additional Capital: SBI

BI India Bureau

Who is becoming SBI’s new chief after Bhattacharya?

BI India Bureau

Kerala banks’ NR deposit breaks record; reaches 1 lakh crore

BI India Bureau

Six banks are going to merge into SBI

BI India Bureau

SBI chief Arundhati Bhattacharya may serve for another year

BI India Bureau

India to facilitate state-owned banks with $3 billion this fiscal

BI India Bureau

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