SBI: Merger of associates not under active consideration

State-owned SBI today said merger of five associate banks is not under its active consideration.
"No such proposal has been formally taken up for approval. While the bank has always had plans to consider merger of associate banks eventually, a position which has been stated by the bank from time to time since long, the matter had not been under active consideration for quite some time," State Bank of India (SBI) said in a BSE filing.
"Going forward, the bank may examine the merger options afresh, when considered appropriate, but preparation of a possible roadmap would take a few months," it said.

SBI first merged its State Bank of Saurashtra with itself in 2008. Two years later in 2010, State Bank of Indore was merged with SBI.
The country's largest lender has five associate banks -- State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
Among these, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed entities.

Shares of the SBI closed at Rs 2690.65 per share, up 0.97 per cent on the BSE today.
SBI reported an 8 per cent decline in net profit at Rs 3,041 crore for the fourth quarter ended March 31, 2014 on account of higher provisioning against bad loans.

The bank had a net profit of Rs 3,299 crore on standalone basis in the January-March quarter of the previous fiscal.
The bank's total income rose to Rs 42,443 crore in Q4, 2013-14, from Rs 36,331 crore in the year ago period.
Provisions against bad loans increased significantly in Q4 to Rs 5,884 crore from Rs 3,974 crore in the year-ago period.
The gross Non Performing Assets (NPAs) as a percentage of total loan rose to 4.95 per cent during the quarter, from 4.75 per cent in the year ago period.
The net NPA also increased to 2.57 per cent as compared to 2.10 per cent in the March 31, 2013.