By IANS
Mumbai : The government-owned State Bank of India (SBI) has begun the much-awaited consolidation process when its board of directors gave its nod for the merger of one of its seven subsidiaries – State Bank of Saurashtra.
“The central board of the bank approved the merger of State Bank of Saurashtra with the State Bank of India, subject to the approval of the government,” SBI said in a statement Monday.
The other associate banks of the group are State Bank of Travancore, State Bank of Mysore, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Indore and State Bank of Patiala. The first three are listed on exchanges.
“The reason we chose to merge State Bank of Saurashtra first is because it gives common advantages. First, it is the smallest of the associates, which means the merger will be smooth,” SBI managing director T.S. Bhattacharya had said Friday.
He said the acquired bank was a 100-percent subsidiary so no shareholders’ approvals were required. This apart, the bank was operating mainly in Saurashtra region of Gujarat where SBI’s network was not large, offering synergies and not competition.