Government has given the one year extension to Arundhati Bhattacharya, first woman chief of SBI. The extension is given amid process of merger of SBI with its associate banks going on.
Arundhati Bhattacharya was appointed as head of State Bank of India (SBI) for a three year term in October 7, 2013. She was going to retire on October 6 this year. The incumbent SBI Chairman has been given one year extension according to top government sources.
There are five associate lenders which are going to be merged with SBI – State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
Bharatiya Mahila Bank (BMB) is also going to be merged with SBI that would make the state-owned lender a global sized bank.
After the merger, SBI will become the 45th largest bank in the world with an asset of over Rs 37 trillion with over 500 million customers and 22500 branches with 58000 ATMs. After merger of associate banks and Bharatiya Mahila Bank (BMD) total capital of SBI will increase by 8 trillion.
Bhattacharya had also said that if given a second term, her first priority would be to “properly complete the merger. It would be one of the biggest thing I will do.”
The other two areas, where she would focus are NPA resolution and carrying on the digitisation drive.
Bhattacharya, who spends over 18 hours on the job, had said her second priority would be resolving bad loans issue.
“My second priority would be resolution of stressed assets rather than just NPA management. The outcomes on this front have to be more. We’ve done a lot of talking and a lot of efforts have gone towards creating these deals but now we need to see the end results of those. So, on the resolution piece, I hope I will be able to do much more,” she had said.
On digitisation, she said, “SBI has been making lots of efforts on digitisation. I hope I will be able to see early gains from it coming during the rest of my term.”