SBI rules out early merger

MUMBAI: State Bank of India has now ruled out a quick roll out of mergers with its seven associate banks. SBI chairman OP Bhatt said the bank is still awaiting approval from the government for merger with State Bank of Saurashtra.

“It’s a process, the government of India will have to approve the merger, but it’s just technical,” Bhatt told DNA Money on Wednesday.

In August last year, the bank announced that it will merge SBS with itself. Five months down the line, SBI’s merger with its smallest associate and a 100% subsidiary is still to be cleared.

This week, a meeting between representatives of the six associates and the SBI board was differed indefinitely, after the representatives asked for more time, Bhatt said. But he refused to set a time frame for merger with the other associate banks.

Bhatt said SBI’s rights issue will go ahead as per schedule despite the volatility in the stock market. “Volatility won’t effect the issue. We have announced a 35% discount to attract investors,’ he said.

r_joel@dnaindia.net