Business Standard

Mergers do not help

Recapitalisation is the only way out for public sector banks

Image
Premium

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

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 22 2017 | 10:45 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com