SBI on careful plan for merger of its subsidiaries in 12 to 18 months' time
February 23, 2011‐ Mumbai, Maharashtra, India
The State Bank of India is carefully making its plans in its path to merge the subsidiary banks with itself in 12 to 18 months' time. This was stated by the Chairman O P Bhatt. SBI clarified that it has not yet met the Parliamentary Standing Committee on Finance on Tuesday as was reported in a section of the media.
SBI has successfully completed the merger of State Bank of Saurashtra and State Bank of Indore with itself by taking permission from all the stakeholders and ensuring that the documents are carefully legally wetted to avoid possible litigation later. Five other banks - State Bank of Hyderabad, State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Travancore and State Bank of Mysore are in the pipeline of merger with SBI. SBI said the merger with State Bank of Saurashtra 'went as smooth as silk' and that an online poll of the employees of State Bank of Mysore conducted showed that 90% of them favoured the merger.
Merger of the subsidiary banks is important so that it can bring economies of scale, reduce administrative overheads, redeploy and channelise trained manpower to business development, reduce avoidable competition from different arms of the same group and more importantly be stronger to face its two private rival banks.
Other top banking news
- Bharatiya Mahila Bank aims at adding 55 new branches in FY 2014-15 (March 11, 2014)
- Indian banking sector to be hit with Microsoft withdrawal of support for XP (March 4, 2014)
- Withdrawal of old Currency Notes in circulation in India (February 22, 2014)
- Linking of MNREGS with the Banking System (February 22, 2014)