Page 10 - Banking Finance MAY 2017

BANK UPDATE

State Bank of India gets into global top-50 league af-
Karnataka Bank installs
ter merger
10,000 PoS terminals 3
State Bank of India (SBI) will join the league of top-50 banks globally in terms of
assets after the merger of five associate banks -State years ahead of schedule
Bank of Bikaner & Jaipur, State Bank of Hyderabad, The demonetisation of specified bank
State Bank of Mysore, State Bank of Patiala, State Bank notes in No-
of Travancore and Bharatiya Mahila Bank (BMB). SBI vember and
will become the 45th largest bank in the world after the thrust on
the merger. migration to
The total customer base of the bank will reach 37 digital channels
crore, with a branch network of around 24,000 and for transac-
nearly 59,000 ATMs across the country. The merged entity will have a deposit tions seem to
base of more than Rs 26 lakh crore and advances level of 18.50 lakh crore. have helped
Arundhati Bhattacharya, Chairman, SBI, said, "We welcome the customers, Karnataka Bank reach its target for
employees and all other stakeholders of associate banks and BMB to SBI fold. installing point-of-sale (PoS) terminals
The bank will strive to conclude the transition process within a quarter. The three years in advance.
combined entity will enhance the productivity, mitigate geographical risks, in-
crease operational efficiency and drive synergies across multiple dimensions while Post-demonetisation, the number of
PoS terminals of the bank increased
ensuring increased levels of customer delight."
by 5,500 across the country. As on
SBI reduces rate by 0.15% March 27, the bank had installed a
The State Bank of India has reduced its benchmark lending rate by 0.15 per cent total of 10,000 PoS terminals at mer-
to 9.10 per cent in a move that will not only bring chant establishments in the country.
the rates closer to the marginal cost of fund lend- P Jayarama Bhat, Managing Director
ing rate but also lower the monthly installments
of many borrowers. and Chief Executive Officer of the
bank, said that the bank had installed
Base rate or the minimum lending rate of the around 4,500 PoS terminals at mer-
country's largest lender has been reduced from chant establishments prior to
9.25 per cent to 9.10 per cent effective April 1. demonetisation. However, the bank
Similarly, the bank has also reduced the Benchmark Prime Lending Rate (BPLR) added nearly 5,500 PoS terminals in
by similar percentage points to 13.85 per cent from 14 per cent.
the last five months. He said the bank
The MCLR based lending rate had seen a 90 basis points cut in January this year has crossed the target set by the Fi-
with one year rate remaining at 8 per cent. nance Ministry on installation of PoS
Axis Bank falls as Q4 profit sinks terminals.

Shares of Axis Bank Ltd fall as much as 2.7 percent, top percent loser on NSE "Reaching the 10,000 PoS mark is a
index. Axis Bank adds 48.1 billion rupees of bad loans to existing pile in March very satisfactory feeling, which also
quarter, taking the total to 212.8 billion rupees ($3.32 billion). amounts to fulfilling one of the goals
The bank's net interest income -- the difference between interest earned and set under 'KBL Vision 2020'," Bhat
interest expended - however rose 3.87 percent to Rs 4,728.6 crore, thereby said.
beating analysts' expectations. Analysts had expected the bank to report a net
profit of around Rs 920 crore for the March quarter. The Chief General Manager of the
bank, Mahabaleshwara MS, told that
The provisions and contingencies in Q4FY17 more than doubled to Rs 2,581 crore the 'KBL Vision 2020' document had
as against Rs 1,168 crore in same quarter last year. Net slippage for the quarter set a target of installing 10,000 PoS
stood at Rs 2,008 crores down from Rs 4,210 crores in Q3FY17, a presentation
from the bank showed. terminals by 2020.

10 | 2017 | MAY | BANKING FINANCE

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