State Bank to merge remaining 5 associate banks in 18 months

The State Bank of India (SBI) is planning to merge its remaining five associate banks with itself over the next 12-18 months in a bid to consolidate banking operations and place the associates on a firmer footing.

SBI, which merged two of its seven associate banks, viz, State Bank of Saurashtra and State bank of Indore, over the past two years, is now left with five associates - State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.

Of these, except the State Bank of Hyderabad all other banks are listed entities.

In a submission made to the standing committee on finance through the finance ministry, chairman O P Bhatt said SBI has proposed consolidation of all subsidiary banks with itself within a period of 12 to 18 months.

However, he said, SBI has not sought any blanket permission from the government for merging the remaining five subsidiaries with itself.

The finance ministry was quoting Bhatt in response to a query raised by the parliamentary panel headed by former finance minister Yashwant Sinha on SBI plans to merge its subsidiaries.