State Bank of Saurashtra (SBS) merger with the parent State Bank of India (SBI) has reached the last lap it is expected that the banking major is likely to clear decks for the merger of another associate bank - State Bank of Hyderabad (SBH).
Sources have all the information of the developments said that merger is expected it is only matter of time.
The sources informed, “SBS is going to establish the model for the merger of other associate banks. For any bank, it’s human resource integration that’s the most important. Even in the case of SBS, that issue still remains unresolved. Once solved, it can be replicated for other banks”.
Probably it will take another three months for SBI to resolve the HR issues in SBS.
SBI is working on Project SHIP signaling for the merger of sequence of associate banks in the near future.
SHIP is short form for four associates — State Bank of Saurashtra, State Bank of Hyderabad, State Bank of Indore and State Bank of Patiala.
“We know its coming. Though finance minister P Chidambaram has assured the unions that no merger proposal would be taken up without a thorough consultative process, things seem to be moving fast in favour of SBI,” Harsha Vardhan Madabhushi, SBH’s director, said. Nowadays sbi car loan scheme is becoming popular as of the low interest rates and easy repayment facility available.
Harsha Vardhan said, the decisions are being automatically certified by the government as they being observed as the bank’s internal issues.
“The unions are not able to digest the deviation from the commitment. There is a plan for indefinite strike starting sometime in September 2008 against the merger proposal,” Madabhushi said.
Indore and Patiala are among the unlisted bodies of seven associate banks of SBI.
Therefore the merger process becomes easy for the SBI since it can be done through a board resolution.
“All the four banks are wholly owned subsidiaries directly controlled by SBI. There is no need for any AGM and the merger decision can be taken anytime after convening a formal meeting of the boards of directors,” a source said.
SBH was established in 1941 by the erstwhile Nizam of Hyderabad, the SBH came into SBI’s control after the Subsidiary Banks Act came into effect in 1959.
Earlier bank used to look after Nizam’s central bank managing the Osmania Sikka and the treasury, with time bank has grown into an institution with about 12,671 employees and over 1,000 branches.
The bank’s branches still take care of the population in the erstwhile Nizam’s region of parts of Telangana in Andhra Pradesh, Karnataka and Maharashtra.
By the end of the quarter ended on June 2008, the bank’s total income was at Rs 1,369.87 crore including an interest income of Rs 1,226.49 crore and a profit of Rs 55.82 crore.
By the end of the fiscal year March 2008, the bank had earned an income of Rs 5,080.29 crore and net profit of Rs 556.99 crore. Currently SBH is having an equity base of Rs 17.25 crore.
Thursday, August 21, 2008
Wednesday, August 20, 2008
SBI general insurance biz final stage set
State Bank of India country’s largest lender is venturing into general insurance business. Almost all the formalities have been fulfilled and by the next month the bank will be finalizing the terms for joint venture with Insurance Australia Group (IAG).
a senior SBI official informed, "We are currently working on the structure of the joint venture agreement. We expect to finalize the operating structure by September. Once a mutual agreement is reached, the new company is expected to get operational in the next three to six months".
An agreement was signed between SBI and IAG in May this year to form a new company for the planned insurance business. According to the agreement, State Bank will be holding a 74 per cent stake in the entity and the rest 26 per cent will be of Australian partner. However State Bank officials, refused to give the details of the financial terms and management structure of the proposed joint venture company.
It is being expected the SBI's entry into general insurance will increase competition amongst the existing players. At present public sector United India Insurance, New India Assurance, Oriental Insurance and National Insurance are the major share holders of the business. While in the private sector leading players are Bajaj Allianz, ICICI Lombard, IFFCO-Tokio General Insurance and Reliance General Insurance.
Government-run State Bank is making aggressive plans for the expansion of the business on various fronts, including custodial business. Although the bank wanted to form a JV with French financial-services Major Societe Generale, a Finance Ministry official informed that the Government was not in favor of the deal.
a senior SBI official informed, "We are currently working on the structure of the joint venture agreement. We expect to finalize the operating structure by September. Once a mutual agreement is reached, the new company is expected to get operational in the next three to six months".
An agreement was signed between SBI and IAG in May this year to form a new company for the planned insurance business. According to the agreement, State Bank will be holding a 74 per cent stake in the entity and the rest 26 per cent will be of Australian partner. However State Bank officials, refused to give the details of the financial terms and management structure of the proposed joint venture company.
It is being expected the SBI's entry into general insurance will increase competition amongst the existing players. At present public sector United India Insurance, New India Assurance, Oriental Insurance and National Insurance are the major share holders of the business. While in the private sector leading players are Bajaj Allianz, ICICI Lombard, IFFCO-Tokio General Insurance and Reliance General Insurance.
Government-run State Bank is making aggressive plans for the expansion of the business on various fronts, including custodial business. Although the bank wanted to form a JV with French financial-services Major Societe Generale, a Finance Ministry official informed that the Government was not in favor of the deal.
Sunday, August 10, 2008
RBI scanning seven more SBI branches for fake currency
The Reserve Bank of India (RBI) is scanning seven more branches of the State Bank of India (SBI) after fake notes with a face value of Rs 1 crore were recovered from the currency chest of its Domariyaganj branch in eastern Uttar Pradesh.
Officials said an RBI team is scanning branches where the money was supplied from the Domariyaganj branch.
Bank manager Dashrath Cirgainya said the currency chest had about Rs 184 crore and the bank branch supplies cash to smaller branches of the district and the neighbouring districts.
The RBI team raided the bank Aug 4 after the arrest of its cashier Sudhakar Tripathi.
Tripathi on Thursday confessed to the police that he had exchanged fake currency of nominal value of Rs 1.5 crore with the original ones in the bank's currency chest.
The scam being probed by the Special Investigation Team (SIT) of the state police was Saturday recommended to the Central Bureau of Investigation (CBI).
A CBI official confirmed that the agency would start investigation as soon as it receives an official request from the Uttar Pradesh government. What an amazing rewards point and cashback offers at SBI Credit Card but for few luck customers so don't miss the adventure!
"Looking at the intensity of the case, a joint director rank official is likely to probe the case," a CBI source confirmed.
The SIT team led by Superintendent of Police Anil Kumar met RBI officials Saturday.
"The SIT will carry on the investigations until the CBI takes over the case," Kumar said.
The police officials fear a fake currency racket involving a staggering Rs 50 crore might be thriving in the regions of Uttar Pradesh bordering Nepal.
Officials said an RBI team is scanning branches where the money was supplied from the Domariyaganj branch.
Bank manager Dashrath Cirgainya said the currency chest had about Rs 184 crore and the bank branch supplies cash to smaller branches of the district and the neighbouring districts.
The RBI team raided the bank Aug 4 after the arrest of its cashier Sudhakar Tripathi.
Tripathi on Thursday confessed to the police that he had exchanged fake currency of nominal value of Rs 1.5 crore with the original ones in the bank's currency chest.
The scam being probed by the Special Investigation Team (SIT) of the state police was Saturday recommended to the Central Bureau of Investigation (CBI).
A CBI official confirmed that the agency would start investigation as soon as it receives an official request from the Uttar Pradesh government. What an amazing rewards point and cashback offers at SBI Credit Card but for few luck customers so don't miss the adventure!
"Looking at the intensity of the case, a joint director rank official is likely to probe the case," a CBI source confirmed.
The SIT team led by Superintendent of Police Anil Kumar met RBI officials Saturday.
"The SIT will carry on the investigations until the CBI takes over the case," Kumar said.
The police officials fear a fake currency racket involving a staggering Rs 50 crore might be thriving in the regions of Uttar Pradesh bordering Nepal.
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