SBI board approves swap ratio for State Bank of Indore merger

Moving a step further for the amalgamation of State Bank of Indore with itself, the board of State Bank of India today approved the swap ratio for the merger.
    
"In today's board meeting, the board approved the swap ratio," SBI chairman, OP Bhatt told reporters here, without disclosing the ratio.

With this, the merger of SBI with State Bank of Indore, which is the smallest subsidiary of SBI, is likely to be completed soon.

The Government had given its in-principle approval to the merger of State Bank of Indore with SBI early this month.
    
State Bank of Indore, which has 500 branches, posted a net profit at Rs 78.62 crore in Q2FY10. Its total income rose to Rs 776.39 crore from Rs 746.25 crore in the year-ago period.

For the half-year ended September, the bank posted a net profit of Rs 155.97 crore, up 48.31 per cent, from Rs 105.16 crore in the corresponding period last year.

As part of consolidating its operations within the group, SBI had acquired State Bank of Saurashtra last year.
   
Its other subsidiaries are State Bank of Travancore, State Bank of Mysore, State Bank of Biakner and Jaipur, State Bank of Hyderabad and State Bank of Patiala.

On the merger of other subsidiaries, Bhatt said the matter was being discussed at the Government level and the bank would go ahead with the process once it receives the approval from the Government.
    
Supported by a healthy growth in net interest income and core fee income, State Bank clocked a 10.19 per cent jump in its Q2 FY10 net profit at Rs 2,490 crore compared to Rs 2,260 crore a year-back.
   
It's standalone total income, during the quarter, stood at Rs 21,301.04 crore as against Rs 17,909.64 crore in the same period last fiscal.