August 20, 2016 / 8:00 AM / 2 years ago

India's SBI says will gain $120 billion in assets from takeover of units

Birds fly past the headquarters of State Bank of India in Mumbai, India, March 9, 2016. REUTERS/Danish Siddiqui

NEW DELHI (Reuters) - State Bank of India (SBI) (SBI.NS), the nation’s biggest lender by assets, will gain $120 billion in assets following its merger with associate banks and Bhartiya Mahila Bank, the lender said in a statement on Saturday.

In a first move to consolidate India’s struggling public sector banks, SBI’s board on Thursday approved share swap ratio for the proposed takeover of five units that had been run at arms-length, as well as state-run Bharatiya Mahila Bank, a bank for women set up in 2013.

Policymakers want to recapitalize and consolidate India’s state-run banks so that they can extend fresh credit and help drive an investment-led recovery in Asia’s third-largest economy that is currently getting a boost from state and private consumption.

India’s 27 public sector banks account for 70 percent of its banking sector assets, as well as the lion’s share of the country’s $120 billion in troubled loans.

SBI said the merger would expand its assets by 36 percent to about $447 billion.

Reporting by Rajesh Kumar Singh; Editing by Shri Navaratnam

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below