SBI chairperson gets one year extension
The
government has extended the term of Arundhati Bhattacharya, chairperson, State
Bank of India (SBI) by one year.
- Ms. Bhattacharya, was appointed on October 7, 2013,
for three years.
- The government has issued a notification to this
effect which has been received by the SBI chairman’s office.
Merger
of SBI associates:
Bhattacharya
had earlier said she wants to complete the merger process in the current
financial year.
The
merger of State Banks of Bikaner & Jaipur (SBBJ), Travancore (SBT), Patiala
(SBP), Hyderabad (SBH) and Mysore (SBM), and Bhartiya Mahila Bank, a bank for
women set up in November 2013, will add Rs. 8 lakh crore or $120 billion to its
assets and will create a banking behemoth with global scale.
- With this merger, SBI aims to be in the list of top
50 large global banks.
Role of
SBI Chief:
The
board of SBI had cleared the merge plan and had finalised the share swap
agreement.
- Apart from completing the merger process, restoring
the health of the bank is another priority for the chairperson.
SBI
position:
Gross
non-performing assets of SBI has almost doubled in one year which reached a
record level of Rs. 1.01 lakh crore as on June 30, 2016 as compared to Rs.
56,421 crore a year ago.
- In term of percentage of gross advances, it was 6.94
per cent as compared to 4.29 per cent a year ago. It net NPA was Rs.
57,421 crore (4.05%), as compared to Rs. 28,669 crore (2.24%), as on June
30, 2015.
- SBI, though, has maintained a healthy provision
coverage ratio of 62 per cent.
- SBI’s health is seen as much better than other public sector banks. SBI had put out a watch list of loan, that is, accounts that could potentially become NPAs, of Rs. 30,000 crore which is much smaller than its peers.
