Press Esc to close

Merger of SBI associates on hold

Last updated: 07 July, 2009
New Delhi, Press Trust of India : 21:18 IST

The proposed merger of the State Bank of Indore with the parent State Bank of India (SBI) is on as per the plan, but the merger of other associate banks has been put on hold, official sources said here on Tuesday.

State Bank of India initially had seven associates and with the merger of State Bank of Indore, the number would come down to five. Earlier in August 2008, SBI had merged State Bank of Saurashtra with itself. The sources said merger of other associate banks has been put on hold till further order. In June, State Bank of India had announced its plans to merge its smallest associate, State Bank of Indore, after respective boards passed resolutions to this effect. The announcement was opposed by bank unions who have threatened to go on strike.

Approval needed

The proposal for the merger of State Bank of Indore is subject to approval by RBI and the government.

The decision came a couple of weeks after Finance Minister Pranab Mukherjee asked public sector banks to look at consolidation as a serious option in order to reduce risks to financial stability and to face competition. SBI holds 98 per cent stake in the State Bank of Indore.

The merger of all associates of State Bank with SBI will take the total assets of the combined entity to rupees eight lakh-crore, which will help the lender to become a global financial powerhouse.

Besides from State Bank of Indore, SBI has five other associates namely State Bank of Travancore, State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Hyderabad.

Go to Top

More from this section
Most trending stories
Photo Gallery
Deepika Padukone with child artists at the promotion of film Padmavati...

Deepika Padukone with child artists at the promotion of film Padmavati...

Shilpa Shetty Kundra and Deepika Padukone at the promotion of film Padmavati...

Shilpa Shetty Kundra and Deepika Padukone at the promotion of film Padmavati...

Shilpa Shetty Kundra with husband Raj Kundra during an event...

Shilpa Shetty Kundra with husband Raj Kundra during an event...

Shikhar Dhawan and L Rahul during Day 4 of the first cricket test math against Sri Lanka...

Shikhar Dhawan and L Rahul during Day 4 of the first cricket test math against Sri Lanka...

Devotees offer prayers to Lord Ayyappa at Bindapur...

Devotees offer prayers to Lord Ayyappa at Bindapur...

Devotees from Mymnmar going to offer huge robe to Lord Buddha at Bodhgaya Mahabodhi temple...

Devotees from Mymnmar going to offer huge robe to Lord Buddha at Bodhgaya Mahabodhi temple...

Contingents of various countries taking part in march past during the opening ceremony of AIBA....

Contingents of various countries taking part in march past during the opening ceremony of AIBA....

Music composer A R Rahman performs at The Sufi Route concert at Qutub Minar....

Music composer A R Rahman performs at The Sufi Route concert at Qutub Minar....

An army jawan performs a fire stunt during a 'Know Your Army' programme...

An army jawan performs a fire stunt during a 'Know Your Army' programme...

Players of Chennaiyin FC and FC Goa vie for the ball during an ISL match...

Players of Chennaiyin FC and FC Goa vie for the ball during an ISL match...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.