State Bank of Indore merger into SBI on hold | india | Hindustan Times
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State Bank of Indore merger into SBI on hold

The proposed merger of State Bank of Indore with its parent State Bank of India has been put on hold even as the finance ministry nudged public sector banks to look at opportunities to bring in consolidation. Finance minister Pranab Mukherjee took up the issue of merger of public sector banks at a recent meeting with state-owned bank chiefs. The issue may find a place in his Budget announcement.

india Updated: Jul 06, 2009 00:07 IST
Mahua Venkatesh

The proposed merger of State Bank of Indore with its parent State Bank of India has been put on hold even as the finance ministry nudged public sector banks to look at opportunities to bring in consolidation. Finance minister Pranab Mukherjee took up the issue of merger of public sector banks at a recent meeting with state-owned bank chiefs. The issue may find a place in his Budget announcement.

The labour ministry has asked the managements of the two banks not to rush with the merger exercise and has stressed the need to take all stakeholders, including the unions on board, while taking such significant decisions.

The boards of both SBI and the State Bank of Indore had approved the merger plan earlier. A formal proposal had also been sent to the finance ministry and the Reserve Bank of India for approval.

CH Venkatachalam, general secretary, All India Bank Employees’ Association told Hindustan Times that trade unions are expected to be invited for talks on the issue by the month-end.

The merger would help SBI expand its branch network. SBI’s total assets would also inch closer to the Rs 10-lakh crore mark.