Sangli Bank to be merged with ICICI Bank
Mumbai: The board of directors of ICICI Bank will soon meet to consider a proposal for the amalgamation of The Sangli Bank Ltd with the bank.

The Reserve Bank of India (RBI) had imposed restrictions on the ailing Sangli Bank, including expansion of advances, as the small-size private sector bank's capital adequacy has fallen to 1.84 per cent.

The financial health of the bank turned precarious in 2005-06 as its capital adequacy ratio (CAR) nosedived to 1.64 per cent from 9.30 per cent in March 2005.

The minimum prescribed CAR is 9 per cent. The adequacy ratio of the bank was 14.94 per cent in March 2003 and 13.68 per cent in March 2004.

In 2005-06, Sangli Bank had posted a loss of Rs29.27 crore for the second year in a row. It reported a loss of Rs31.31 crore last year, according to the RBI data.

Sangli Bank has a network of 186 branches in seven states, including Maharashtra, Karnataka, Gujarat, Andhra Pradesh and Goa. However, it does not have any ATM facility.
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Govt stake in PSU banks not to go below 51 pc
New Delhi: The Government has said it will not dilute its stake in PSU banks below 51 per cent and its proposed acquisition of RBI's holding in SBI would not adversely affect the capital raising ability of the apex bank.

The Finance Minister P Chidambaram replying to a question on Government's efforts to acquire RBI's stake in SBI, he said the country's largest bank has a comfortable capital adequacy ratio of 12.63 per cent as on September 30 this year, which is well above the minimum regulatory requirement of nine per cent. Further, the bank has a number of avenues, irrespective of its ownership to strengthen its capital - raising fresh equity, issue of innovative perpetual debt instruments and various other instruments to shore up its Tier II capital, he said.

SBI shares were up 0.73 per cent at Rs1,356 at 1:45 pm local time in a weak Mumbai market. Chidambaram said SBI had a capital adequacy ratio of 12.63 per cent as on Sept 30, well above a minimum regulatory requirement of 9 per cent.
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