Cabinet approved merger of State Bank of Indore and SBI

Finally the merger of State Bank of Indore by the State Bank of India has got cabinet approval. The cabinet also gave approval to introduce a Bill in the Parliament for making amendments in the State Bank of India (Subsidiary Banks) Act, 1959, to remove references of State Bank of Indore.
Before this in 2008, State Bank of Saurashtra was merged with SBI, since then the issue of acquisition of the banks other associate banks has been attracting attention of SBI. However the bank has been facing competition for the same business in the same market, under the same brand from most of its branches and those of the State Bank of Indore. Due to which SBI has been unable to fully exploit its brand equity for driving business growth.