SBI looking for merger of 5 associate banks into itself

Country’s largest lender State Bank of India is looking for the merger of five of its associate banks into itself. The five associate banks are powerful at the state levels. Chairman O.P. Bhatt, in a reply to the rumors said he will take up the matter with the government. On the other hand after this rumor, this week the shares of the listed associate banks’ have moved up.

Meanwhile the State Bank of Indore has already been merged with the parent bank the remaining five associates which are up for merger are the State Bank of Bikaner and Jaipur, the State Bank of Hyderabad, the State Bank of Mysore, the State Bank of Patiala and the State Bank of Travancore.


Bhatt while speaking on the sidelines of a Confederation of Indian Industry seminar told reporters, “I will discuss with the government whether we should go ahead with some more banks.”

If the government approves the merger of five associate banks then SBI will approach the associate banks for this. Bhatt said, “If the government answer is yes, as we had done in the past, we will talk to the remaining five associate banks.”

When asked from the listed banks and the unlisted ones which will be merged first, he replied, “It doesn’t matter whether it’s listed or unlisted. What matters is how smoothly we can do it because now we have an experience in terms of modalities—both for listed and unlisted. We can pick either.”

On Thursday finally the merger of State Bank of Indore with SBI will take place. It is expected everything will move smooth as it happened during the merger of State Bank of Saurashtra with its sister banks.

Bhatt added he want all associate banks of SBI should be well capitalized.