According to Mr. O.P. Bhatt, Chairman, State Bank of India is considering the merger of all five of its remaining associate banks with itself, having amalgamated with two of them in the last two years.
The merger of State Bank of Indore, the smallest associate bank, was completed last month. All 503 of State Bank of Indore's branches, including 437 core banking branches and 66 outlets for NRI services, became a part of SBI from August 26, 2010.
The merger would avoid competition between the two entities and would give State Bank of Indore easier access to funds at competitive rates, compared to what it would have managed on the basis of its own growing balance sheet.
This was the second merger of an associate bank with SBI after a similar exercise with State Bank of Saurashtra in August, 2008.
Following the merger, SBI is left with five associate banks -- State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
Among these, the State Banks of Bikaner and Jaipur, Mysore and Travancore are listed companies.
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