SBI completes asset quality review of associate banks post merger
SBI chairperson Arundhati Bhattacharya says an audit will take place on 24 April post which every week one bank will be taken for granular data merger
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Mumbai: State Bank of India (SBI) has completed the process of aligning the asset quality of its associates with itself post consolidation of five associate banks through an asset quality review exercise.
“We have undertaken ourselves an asset quality review in respect with all the common accounts… For that we have taken some additional more than Rs8,600 crore of provision,” said Arundhati Bhattacharya, chairman, SBI, in a press conference held on Monday.
Provisions against bad loans till December quarter stood at Rs21,254 crore compared to Rs14,845 crore a year ago for the same period. For the group, capital adequacy ratio will stand at 13.19%.
According to Bhattacharya, audit will take place on 24 April post which every week one bank will be taken for granular data merger. So far, treasury and Bharatiya Mahila Bank data merger has already taken place. Out of 12,500 employees of associate banks eligible for voluntary retirement service, 2,800 have so far applied, said Bhattacharya.
SBI expects to save costs and gain scale after merging its five subsidiary banks with itself, senior executives said on Monday, adding that there will be no big surprises in terms of bad loans after the merger.
On 1 April, SBI merged its five associates State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala, State Bank of Travancore and Bharatiya Mahila Bank with itself.
Reuters contributed to this story.