‘Merger of SBI, Associate Banks to be Done by FY18’
Arundhati Bhattacharya said the merger will raise its ranking, putting it among top 50 banks globally
Mumbai: The merger of five associate banks with State Bank of India will be completed in the fiscal year 2018 even with the Cabinet giving its approval on Wednesday. Speaking to media, bank chairman Arundhati Bhattacharya said, “We would not like to merge associates with the parent bank close to the year end. The merger will be completed in fiscal year 2018.”
She said the merger of associate banks with the country’s largest lender will raise SBI’s ranking among global banks. “We would be among the top 50 banks globally,” she said, adding post merger, the bank will have a 25% market share in deposits and advances.
Earlier, the bank had planned to merge the five associate banks and Bhartiya Mahila Bank with itself by the end of this fiscal. However, it was delayed due to demonetisation that was announced on November 8. The combined entity will have a massive network of nearly 23,000 branches and 21,000 ATMs, further establishing the dominance of the nation’s largest bank. Two of the five associate banks — State Bank of Patiala and State Bank of Hyderabad — are unlisted. Among the other three, Mumbai-based SBI holds a 75% stake in State Bank of Bikaner & Jaipur, 90% in State Bank of Mysore, and 79% in State Bank of Travancore.
“We are quite ready for the associ- ate banks’ merger and as soon as the government notifies the final order, we will be ready to kick it off. We had planned to do it by March and we were quite ready for it, but the demonetisation effect got it deferred. So, it will probably be a deferment of a q u a r t e r, ” Bhattacharya told reporters soon after announcing the results.