Performance Results OF PSU Banks 2015-16

Merger of SBI associate banks to cost Rs 3,000 cr: Bhattacharya-Business Standard 27th May 2016

However, benefits from merger including Bharatiya Mahila Bank will outweigh costs

The proposed merger of State Bank of India (SBI) with its five associate banks and the Bharatiya Mahila Bank (BMB) will cost it around Rs 3,000 crore, said SBI chairman Arundhati Bhattacharya, while announcing the bank’s fourth-quarter results here on Friday.

However, the benefits from the merger will outweigh the costs, she added. “We have sought the government’s permission to begin negotiations. We hope the permission will be forthcoming... We have tried to assess what a merged entity would look like, and I can assure you that there will not be any impact either on capital or NPA (non-performing asset) position, and we are well positioned for the merger.”

The five associate banks of SBI are State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore.

Much of the cost of the merger will accrue from the provident fund liabilities of employees. “On account of provident fund, the maximum amount we are anticipating is Rs 3,000 crore,” she said.

http://www.business-standard.com/article/companies/merger-of-sbi-associate-banks-to-cost-rs-3000-cr-bhattacharya-116052701193_1.html

What I commented in last few days

But the fact is that no improvement has actually taken place  at ground level during last three decades  in culture of lending , in position of recovery and in habit of negligence in monitoring in PSU banks. Situation has rather been deteriorating year after after. Top ranked Officers who are clever in manipulating balance sheet come out with shining balance sheet and get elevation through their mentor Ministers and RBI officials. But sooner or the later, in some quarter or the other , each bank has to book bad results and make false promises that they will deal with problems and try to reduce stressed assets in forthcoming quarters.
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In fact ,Officials are in general busy in falsely glorifying their bosses. A Branch Manager glorifies a Regional Head,  RH glorify  Zonal Head , General Managers glorify ED and CMD and finally CMDs are busy in glorifying Finance Ministers and RBI officials. Most of them are fittest Yesman than real performers. They are good speakers to hypnotise ministers and bank staff both. They are more loyal to their sources of wealth and power than to their bank.