[sbinews] SBI against associate banks' merger -The Eonomic Times

  • From: rspai@xxxxxxxx
  • To: sbinews@xxxxxxxxxxxxx
  • Date: Wed, 19 Nov 2003 05:43:20 +0500

SBI against associate banks' merger
(Economic Times)

AHMEDABAD: The State Bank of India (SBI) is not in favour of merger of all the 
seven associate banks into a single entity.  C Bhattacharya, deputy managing 
director and chief credit officer of SBI, told ET that though known as local 
banks, the associate banks had updated their technology and operations and were 
now working as global banks. 

 “Their performance is reflected in their profits and the range of services 
rendered by them. There is no need for any merger,” he said. He said that some 
of the associate banks had successfully brought their non-performing assets 
(NPAs) to less than 2% from earlier 7-8% within the last three years. 

Mr Bhattacharya said that with the introduction of Net banking, core banking 
and ATMs, it would now facilitate easy access for anywhere banking for the 
customers of these banks across the country. 

Referring to the credit prospects in time to come, he said that the credit 
growth is expected to increase by 15-17% by March ‘04, as banks were receiving 
good enquiries not only from corporate sector but also those who are involved 
in infrastructural projects like roads and telecom services.Following good 
rains, the demand for fresh credit from the agriculture sector and small-scale 
sector has been increasing, he said. 

Referring to the competition in the housing finance sector from the private 
sector banks, Mr Bhattacharya said that now the borrowers have become very 
conscious and they do keep quality services, ability to release fund and also 
the stability of the bank in mind. 
The banking system does not work based only on the “rate of interest” of a 
particular institution but the credit of the institution is equally important. 

Besides, the public sector banks are also bound to discharge their social 
obligations and making available necessary credit flow for the borrowers 
recommended by the government-sponsored agencies whereas the private sector 
banks are exempted from this obligations, he said. 

Referring to the technology upgradation in the State Bank group, Mr 
Bhattacharya said that all the 14,000 branches of the group, including 
associate banks would be fully computerised by March ‘04. 

Within next one year, about 5,000 branches would be connected with core banking 
network, enabling the customers to get his cheque honoured in any State Bank 
group branch anywhere in the country, he said. 

Keeping in view the increasing expenses on education, his bank is actively 
considering to revise upwards the education loans, which are now available, 
from Rs 7.5 lakh in the country and Rs 15 lakh abroad. However, the bank has 
already introduced a scheme for educational loan for nursing education and 
other professions. 

Mailing list (sbinews@xxxxxxxxxxxxx) related information:

News/articles about SBI and Banking related matters published  in the print 
media, Internet etc will be circulated through this Mailing List. 

The messages in this list will help in improving awareness of SBI and its 
activities vis-a-vis the happenings in the Banking industry. This should be of 
help to all staff members of SBI, particularly those who are preparing for 
promotional written tests/interviews/group discussions. Subscription to this 
Mailing List is simple and FREE. Please check the procedure below. Please share 
this information with other colleagues/branches that could be interested in 
subscribing to this Mailing List. 

The messages circulated here should not be deemed to have the official 
endorsement of the SBI or any of its employees. The correct factual position 
may be ascertained from official sources. 

To join this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx 
with the word 'subscribe' without the quotes in the subject of the email 

To leave this mailing list, just send an email to sbinews-request@xxxxxxxxxxxxx 
with the word  'unsubscribe' without the quotes in the subject of the email 

Archives (old messages) are available for viewing at:
Click on the month-year at the lower left corner to view messages posted during 
that month. 

This is an announcements/newsletter type mailing list i.e. only the Moderator 
can post messages to the list. 

This mailing list is maintained by Sri. R.S.Pai, currently working as Chief 
Manager(IT-Internet Banking), SBI, Corporate Centre, Mumbai. 
Visit http://rspai.tripod.com for some useful Banking, Reference and Utilities 

Other related posts:

  • » [sbinews] SBI against associate banks' merger -The Eonomic Times