The Union Cabinet today gave its approval to the merger of State Bank of Saurashtra with its parent State Bank of India, India's largest lender controlling more than one-fourth of banking assets.

The merger between State Bank of Saurashtra and State bank of India has been approved by India, which will help the smaller banks face challenges better.

After a cabinet meeting, Priyaranjan Dasmunshi reported that the merger would help State Bank of Saurashtra to face the competition arising from globalization of the economy. Further it will also augment efficiency and enable better management of risk.

The order would be issued by the government under which it will sanction the merger and move the bill in parliament to repeal State Bank of Saurashtra Act and amend State Bank of India (subsidiary banks) Act for the merger to take effect.

A new study has revealed that web sites of banks and financial institutions are not safe. They can be easily hacked by the hackers and important data can be stolen by them. This is a warning for security of computers and networks of industries and corporate sector. Online banking and other online practices are vulnerable to data theft and other security issues. The study was released this week from the University of Michigan.

Zurich - Swiss banking giant Credit Suisse said Thursday it returned to the black in the second quarter of 2008, with net earnings of 1.2 billion francs (1.16 billion dollars).

The figure was 62 per cent below the second-quarter 2007 result, but an improvement after the bank had lost 2.15 billion francs in the first quarter this year reflecting the turbulence in the subprime mortgage sector.

Credit Suisse said that in the second quarter all three of its divisions - private banking, investment banking and wealth management - operated at a profit.

IDBI Bank, a leading public sector lender, has reported a net profit of Rs 160 crore for the quarter ended June 30, 2008, up 4% as against Rs 153 crore in the corresponding quarter ended June 30, 2007.  

The total income for the reporting quarter rose 24.94% to Rs 2,740 crore from Rs 2,193 crore in the year-ago period.

Recently, Stock Holding Corporation of India Limited (SHCIL) has signed a pact with IDBI Bank for issuing of stamp certificates and collection of money on its behalf as Authorised Collection Centre.