SBI and State Bank of Indore merger to complete by March

The merger of State Bank of Indore with country’s largest Bank, State Bank of India is likely to be completed by the end of this financial year.

This is the second merger after the State Bank of Saurashtra merger with SBI in August 2008.

After the completion of this merger five associate banks of the SBI will be left namely State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.

The merger of State Bank of Indore with SBI has got the approval from both the central board of the bank as well as of government of India. In 2008-09 State Bank of Indore registered a net profit of Rs. 279 crore. SBI will have about 98 per cent stake in the bank.

In another development SBI indicating towards the lending rates has said the rates may rise from the second quarter of fiscal 2010-11. Chairman of SBI O P Bhatt said "So far as bank lending rates are concerned, I do not expect lending rates going up before May-June."

As recently RBI had raised its key rates in its policy review which will reduce the liquidity by Rs 36,000 crore from the monetary system.

SBI has also launched new scheme officers and other naval personnel called Defence Salary Package-Navy to offering services for free or with concessions.

The bank will be offering free drafts, free cheque book, free fund transfers and free ATM cards to officers and other navy personnel.