The State Bank of India (SBI) has just decided to merge its wholly-owned associate bank, State Bank of Saurashtra (SBS), with itself. The boards of both banks on Saturday approved the merger proposal at their respective board meetings, which were held in Mumbai on Saturday. The move will doubtless be tracked by SBI’s principal rival and the country’s largest private sector bank, ICICI Bank.
Confirming the developments, SBI managing director T S Bhattacharya told ET: “The SBI board on Saturday moved a resolution to merge State Bank of Saurashtra (SBS) into SBI.” ET could not get an official response from SBS despite repeated attempts to reach them.
Significantly, the SBI-SBS merger is seen as a precursor to the eventual merger of other SBI associate banks with SBI. Sources familiar with the matter suggested that in the next phase, SBI may consider merging its other two wholly-owned associate banks — State Bank of Hyderabad and State Bank of Patiala — with itself. It is also learnt that the SBI board is favourably disposed towards merging its seven associate banks with itself in phases.
(Source: Economic Times)
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