SBI Postpones Merger Plan with Associate Banks
India’s Largest Lender, state owned State Bank of India has adopted a wait and see attitude towards the proposed merger with six associate banks. SBI chairman OP Bhatt said there were no further merger plans for the time being after having completed the merger with State Bank of Saurashtra (SBS).
SBI earlier said it intended to merge State Bank of Patiala, State Bank of Hyderabad and State Bank of Indore with itself. These plans have now been postponed and sources within SBI told the Economic Times that the focus right now is navigating the financial crisis and resulting economic slowdown. Issues such as mergers would have to take a backseat for the time being but would resume once the economic outlook stabilises.
SBI’s long term plan has been to merge all its associate banks with itself. After the combination with SBS, six associate banks remain, State Bank of Patiala, State Bank of Hyderabad, State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Indore and State Bank of Travancore.
Currently the bank is busy integrating the operations of SBS with that of SBI. Mr. Bhatt said post merger rationalisation is in areas such as technology, asset management and branch banking. Mr. Bhatt went on to add the experience would prepare SBI for the proposed merger with its six remaining associate banks when they eventually occur.
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