SBI mops up Rs 39,727 cr 'demonetisation deposits' in two days, net profit falls (Roundup)

Pursuant to the central government's demonetisation move, India's largest bank State Bank of India (SBI) has mopped up Rs 39,727 crore as deposits across the country during the last two days, a senior bank official said on Friday.

"Yesterday (Thursday) the total deposit was Rs 22,150 crore. Today till 6 p.m. the deposits were Rs 17,577 crore, totalling Rs 39,727 crore," he said preferring anonymity.

According to him a total of Rs 1,649 crore was exchanged.

Earlier the bank had said a sum of Rs 53,000 crore was deposited during the last two days, which the bank latter corrected as Rs 39,727 crore.

On Tuesday, the Centre announced that Rs 500 and Rs 1,000 notes ceased to be legal tender from November 8 midnight.

"The cash is drying up. But we are taking care of it. There is no need to panic. We still have 50 days in hand. Nothing is going out of fashion. Till that time, please publicise the use of debit cards," bank Chairperson Arundhati Bhattacharya told reporters here while announcing the bank's second quarter results.

The SBI said it closed the second quarter of the current fiscal with a lower net profit of Rs 2,538.32 crore.

The bank said it has posted a net profit of Rs 2,538.32 crore for the quarter ended September 30, down from Rs 3,879.07 crore for the quarter ended September 30, 2015.

The bank's total income for the period under review increased to Rs 50,742.99 crore compared with Rs 46,854.81 crore for the quarter ended September 30, 2015.

The bank's unamortised loss on account of selling its assets to Asset Reconstruction Companies as on September 30, 2016, stands at Rs 516 crore.

The bank's Board of Directors also approved issuance of maximum 13,63,65,146 equity shares of face value of one rupee each, to the shareholders of State Bank of Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT) and the government of India (GoI) for its shareholding in Bharatiya Mahila Bank Limited (BMBL) as on the record date at the agreed swap ratio as under:

a) For minority shareholders of SBBJ -- 28 equity shares of SBI of the face value of Re 1 each to be issued in lieu of 10 equity shares of SBBJ of the face value of Rs 10 each.

b) For minority shareholders of SBM -- 22 equity shares of SBI of the face value of Re 1 each to be issued in lieu of 10 equity shares of SBM of the face value of Rs 10 each.

c) For minority shareholders of SBT -- 22 equity shares of SBI of the face value of Re 1 each to be issued in lieu of 10 equity shares of SBT of the face value of Rs 10 each.

d) 4,42,31,510 Equity shares of SBI of the face value of Re 1 to be issued to the Government of India in lieu of their shareholding in BMBL (i.e. 100 crore shares of the face value of Rs 10 each).

As a result the issued capital of the SBI will go up from Rs 776,35,98,072 to Rs 789,99,63,218 (maximum), subject to approval of the schemes of acquisition of SBBJ, SBM, SBT and BMBL by the government of India.

--IANS

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