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Sunday, September 18, 2016

SBI Chief Arundhati Bhattacharya Likely To Get Extension: Report

The government is considering giving a one-year extension to State Bank of India chief Arundhati Bhattacharya 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 said.

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 Bank Board Bureau (BBB) on the extension issue and an order in this regard is expected in the next few days, according to sources.

Earlier this year, the Cabinet gave its nod for the merger of State Bank of India (SBI) and its associate lenders and Bharatiya Mahila Bank (BMB) which would make the state-owned lender a global-sized bank.

SBI has five associate lenders - State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.

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 lakh crore or over $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.

Currently, SBI has close to 16,500 branches, including 191 foreign offices across 36 countries.

SBI first merged State Bank of Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged with it.

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