State Bank of India, has started the consolidation process with its associate banks by deciding to merge State Bank of Saurashtra (SBS) with itself.
“This is the beginning of whole group’s restructuring. State Bank Of Saurashtra is the smallest of the seven associates and based on the experience we will look at other banks,” said SBI Managing Director T S Bhattarcharya.
The boards of both SBI and State Bank of Saurashtra, its wholly-owned subsidiary, have given approval to the merger proposal on Saturday. Bhattacharya also said that the bank had mandate only for SBS at present and it would shortly seek RBI and government approval.
The other associates are State Bank of Travancore, State Bank of Mysore, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Indore and State Bank of Patiala. Of these, the first three are listed on the stock exchanges.
