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In a
first move to consolidate India's struggling public sector
banks, SBI's board on Thursday approved share swap ratio for the
proposed takeover of five units that had been run at
arms-length, as well as state-run Bharatiya Mahila Bank, a bank
for women set up in 2013.
Policymakers want to recapitalize and consolidate India's
state-run banks so that they can extend fresh credit and help
drive an investment-led recovery in Asia's third-largest economy
that is currently getting a boost from state and private
consumption.
India's 27 public sector banks account for 70 percent of its
banking sector assets, as well as the lion's share of the
country's $120 billion in troubled loans.
SBI said the merger would expand its assets by 36 percent to
about $447 billion.
(Reporting by Rajesh Kumar Singh; Editing by Shri Navaratnam)
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