‘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

The Economic Times - - Smart -

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.

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