SBI Commercial And International Bank Merger

Hi buddy can you here tell me purposed behind SBI Commercial And International Bank Merger, plz tell me about it , as my sisiter want to know about it ?

[sumit]

All branches of State Bank of India Commercial and International Bank Limited have started functioning as branches of State Bank of India from July 29, 2011.

As you asking I am telling proposed behind merger which was in 20111 would help in eliminating the cost involved in maintaining the administrative structure of State Bank of India Commercial and International Bank Ltd (SBICI) as both the branches of State Bank of India Commercial and International Bank Ltd (SBICI) would be easily absorbed in the operations of the main Bank. Clients of SBI Commercial & International Bank Ltd. who will have access to the bigger network of State Bank of India.


State Bank of India Commercial and International Bank Ltd was set up in 1994 after taking over the Indian operations of the erstwhile Bank of Credit & Commerce International Ltd (BCCI), which went into liquidation in 1991.

It's net worth stood at Rs 128.74 crore on the capital base of Rs 100 crore. It had total business (deposits and advances) of less than Rs 700 crore, with a return on asset of 0.49%.

As per RBI guidelines, the minister said, for ownership in private sector bank, the bank's capital had to be raised to Rs 300 crore.

The existing business model of SBICI and the returns generated by it over the years do not justify capital infusion, she said.

As of March 2011, State Bank of India Commercial and International Bank Ltd earned a net profit of Rs 4.21 crore.

The board of SBI had cleared amalgamation of State Bank of India Commercial and International Bank Ltd with itself in 2008.

SBICI's capital adequacy ratio (CAR) stood at 28.16% at the end of March 2011.


Bank summary

TypePublic
Traded asNSE: SBIN
BSE: 500112
LSE: SBID
BSE SENSEX Constituent
CNX Nifty Constituent
IndustryBanking, financial services
Founded2 June 1806, Bank of Calcutta
27 January 1921, Imperial Bank of India
1 July 1955, State Bank of India
2 June 1956, nationalization
HeadquartersMumbai, Maharashtra, India
Area servedWorldwide
Key peopleSmt. Arundhati Bhattacharya
(Chairperson)
ProductsConsumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, savings, securities, asset management, wealth management, credit cards,
Revenue 257289 crore (US$38 billion) (2015)
Profit 17517 crore (US$2.6 billion) (2015)
Total assets 2700110 crore (US$400 billion) (2015)
Total equity 203417 crore (US$30 billion) (2015)
OwnerGovernment of India