The boards of these associate banks are expected to give in-principle nod to the merger, sources said. These associates include — 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.

SBI has already merged one of its associates — State Bank of Saurashtra — but with some difficulties, following protests from their unions.

The merger of the seventh associate, State Bank of Saurashtra with SBI, has already been approved by both boards, and is awaiting the government nod. The consolidation is expected to position the country’s largest bank as a global giant, with its balance sheet  expected to grow manifold. SBI, which is already one of the largest banks in Asia, is looking at a place among 50 biggest banks in the world, through the consolidation process.

SBI is proposing a right issue in next year, through which the bank is expected to raise Rs 17,000 crore.

State Bank’s seven associates have a combined branch strength of 4,820, while the total balance sheet is around Rs 2 lakh crore. State Bank has controlling stakes in its associate banks, ranging from 75 per cent to 100 per cent.