SBI gains on acquiring 40% stake in CIBL

State Bank of India (SBI) rose 1.26% to Rs 599.55 after the company has acquired 40% stake in Commercial lndo Bank LLC (CIBL), Moscow held by Canara Bank for cash consideration of $14.67 million.

Commercial Indo Bank (CIBL) provides banking services. It is a joint venture of State Bank of lndia and Canara Bank in 60:40 ratio. Its turnover was Rs 2.03 crore for financial year 2022.

Earlier on 15 November 2022, company had entered into agreement to acquire 40% stake in Commercial lndo Bank. Based on share sale agreement and with consent of Central Bank of Russia, entire shares held by Canara Bank have been transferred to SBI on 30 November 2022. Consideration amount is expected to be transferred before 31 March 2023.

Post-acquisition, SBI will be holding 100% stake in CIBL.

SBI is banking and financial services statutory body engaged in providing a wide range of products and services to individuals, commercial enterprises, large corporates, public bodies, and institutional customers.

The bank's net profit jumped 73.9% to Rs 13,624.52 crore on 14.2% rise in total income to Rs 88733.86 crore in Q2 FY23 over Q2 FY22.

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