Mergers do not help

Recapitalisation is the only way out for public sector banks

Business Standard Editorial Comment 

State Bank of India (SBI) Chairperson Arundhati Bhattacharya warned of a “little more pain in the near term” while announcing the bank’s results on Friday. That was enough for the market to respond negatively with the stock slumping over 4 per cent on Monday. As the numbers showed, the “little pain” was a huge understatement — while the bank as a standalone entity reported a profit of Rs 2,800 crore for the fourth quarter and Rs 10,484 crore for the full year, the new consolidated SBI after the merger of four associate banks made a loss of Rs 390 crore ...

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Mergers do not help

Recapitalisation is the only way out for public sector banks

Recapitalisation is the only way out for public sector banks State Bank of India (SBI) Chairperson Arundhati Bhattacharya warned of a “little more pain in the near term” while announcing the bank’s results on Friday. That was enough for the market to respond negatively with the stock slumping over 4 per cent on Monday. As the numbers showed, the “little pain” was a huge understatement — while the bank as a standalone entity reported a profit of Rs 2,800 crore for the fourth quarter and Rs 10,484 crore for the full year, the new consolidated SBI after the merger of four associate banks made a loss of Rs 390 crore ... image
Business Standard
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