'SBI exposure to Lehman at $5m'...
The country's largest bank, State Bank of India (SBI), has $5 million exposure to Lehman Brothers against its global balancesheet of $250 billion.
"Even out of that $5 million, 60-70% can be recovered," said SBI chairman O P Bhatt, who was addressing a media conference immediately after official announcement of the merger of Bhavnagar-headquartered State Bank of Saurashtra.
He said that the bank has no immediate plans to merge any of its associate banks with itself. Commenting on future mergers, Bhatt said that the merger does not mean only the marriage of balancesheets but it goes beyond that. "Sometimes it becomes a complex issue. After this merger, we would watch and monitor the situation in the banking industry and would think of merger only if any associate bank comes forward for the marriage of convenience (merger)." Bhatt said.
Merger is not a new process for banking industry, he said adding that the SBS is much older than SBI as SBS was constituted with the merger of several small state banks of Bhavnagar, Jamnagar, Nawanagar and other small states in 1950. SBI came into existence only in 1955.
Referring to the benefits of merger, he said employees and officers of the bank would be treated at par with SBI staff members and would get pay and perks accordingly. With regard to benefit to customers, Bhatt said that customers of SBS would get greater exposure.
Source: The Times of India
"Even out of that $5 million, 60-70% can be recovered," said SBI chairman O P Bhatt, who was addressing a media conference immediately after official announcement of the merger of Bhavnagar-headquartered State Bank of Saurashtra.
He said that the bank has no immediate plans to merge any of its associate banks with itself. Commenting on future mergers, Bhatt said that the merger does not mean only the marriage of balancesheets but it goes beyond that. "Sometimes it becomes a complex issue. After this merger, we would watch and monitor the situation in the banking industry and would think of merger only if any associate bank comes forward for the marriage of convenience (merger)." Bhatt said.
Merger is not a new process for banking industry, he said adding that the SBS is much older than SBI as SBS was constituted with the merger of several small state banks of Bhavnagar, Jamnagar, Nawanagar and other small states in 1950. SBI came into existence only in 1955.
Referring to the benefits of merger, he said employees and officers of the bank would be treated at par with SBI staff members and would get pay and perks accordingly. With regard to benefit to customers, Bhatt said that customers of SBS would get greater exposure.
Source: The Times of India
Labels: Business
posted by Senorita at
3:07 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home