Former SBI Chairman Pratip Chaudhuri has said the nation's largest lender would have completed the process of merging a subsidiary but for the huge capital requirement due to the Basel III norms. "We have decided to merge one more subsidiary which we are pretty positive but because of Basel III impact, it is (delayed)," Chaudhuri, who left SBI last month, said here.SBI had a shortage of capital but now is better placed to merge one of its subsidiaries, he said, adding that in the recent past it was able to merge State Bank of Indore and State Bank of Saurashtra. Chaudhuri specifically pointed to steep salary hike which will have to be given to the employees of the merging subsidiary, which eats into capital base of the parent. Depending on the bank to be merged, it will take either Rs 1,000 crore or up to Rs 2,000 crore for the merger.
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