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Profitability of PSBs post amalgamation
December 22, 2021
Benefit of public sector banks has enhanced a united premise later combination, the government said in Parliament on Tuesday. As per RBI’s information, productivity of public sector banks (PSBs) that have been amalgamated/merged during the most recent five years has improved on consolidated basis, Minister of State for Finance Bhagwat Karad said in a written reply to the Rajya Sabha.
The profitability of State Bank of India (SBI), into which five partner banks of SBI and Bhartiya Mahila Bank were merged with impact from April 1, 2017, improved from a deficiency of ₹1,378.35 crore in monetary year 2016-17 to a benefit of ₹20,410.47 crore in 2020-21, Karad said.
Similarly, Bank of Baroda, into which Vijaya Bank and Dena Bank were amalgamated from April 1, 2019, showed improvement from a deficiency of ₹8,339.27 crore in 2018-19 to a benefit of ₹828.96 crore in 2020-21, the Karad said.
In the event of Punjab National Bank, into which Oriental Bank of Commerce and United Bank of India were amalgamated from April 2020, the performance improved from a loss of ₹8,310.93 crore in 2019-20 to a benefit of ₹2,021.62 crore in 2020-21.
Association Bank of India, which combined Andhra Bank and Corporation Bank with itself in April 2020, improved monetarily from a loss of ₹6,539.22 crore in 2019-20 to a benefit of ₹2,905.97 crore in 2020-21, Karad said.
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