The merged entity to be created out of the proposed merger of ICICI and ICICI Bank will be smaller than the State Bank of India (SBI), both in terms of asset base and borrowings.
The merged entity had assets of Rs 95,170 crore as on June 30, 2001, almost one-thirds the size of the State Bank of India's assets of Rs 3,15,644 crore as on March 31, 2001. The merger will displace Canara Bank from the second place in the asset rankings; Canara Bank had assets of Rs 66,439 crore as on March 31, 2001.
The two entities, ICICI and ICICI Bank had combined borrowings of Rs 77,552 crore which is again just 38 per cent of the SBI's total deposit base of Rs 2,05,626 crore, again on March 31, 2001.
In terms of advances, SBI maintains its top position with advances of Rs 1,09,377 crore (as on June 30, 2001). The combined advances of ICICI and ICICI Bank as on that date were Rs 67,488 crore, accounting for 61.7 per cent of SBI's loans and advances portfolio.
The combined revenue (interest earned and other income) coming into the books of the merged entity will cross the Rs 10,000 crore mark, but it still will be just 37 per cent of the market leader SBI. The combined profits will be over Rs 700 crore accounting for 62 per cent of SBI's profits.
Working with the published results for the quarter ended June 30, 2001, the two entities, ICICI and ICICI Bank, reported a higher net profit margin of 12.8 per cent compared with SBI's net profit margin of 7.8 per cent.
