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FE Home- BANKING & FINANCE - Story

Merger of State Bank of Indore with SBI on as per plan

Agencies
Posted: Tuesday, Jul 07, 2009 at 1549 hrs IST
Updated: Tuesday, Jul 07, 2009 at 1549 hrs IST


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New Delhi: The proposed merger of the State Bank of Indore with the parent State Bank of India is on as per the plan, but the merger of other associate banks has been put on hold, official sources said.

SBI initially had seven associates and with the merger of State Bank of Indore, the number would come down to five.

In August 2008, SBI had merged State Bank of Saurashtra with itself.

The sources said merger of other associate banks has been put on hold till further order.

Last month, SBI had announced its plans to merge its smallest associate, State Bank of Indore, after respective boards passed resolutions to this effect.

The announcement was opposed by bank unions who have threatened to go on strike.

The proposal for the merger of State Bank of Indore is subject to approval by RBI and the government.

The decision came a couple of weeks after Finance Minister Pranab Mukherjee asked public sector banks to look at consolidation as a serious option in order to reduce risks to financial stability and to face competition.

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Comments
» Merger of 5 associate banks with SBI
Posted by Mukul on 2009-07-10 09:13:15.058328+05:30
The merger issue has had a long period of indecision due to non commercial reasons. The present Govt has mandate to expedite the derailed process of reforms including in banking sector. The present conflicting signals on issue has already affected the functioning or 5 associate bank and morale of its employees. The time is for taking bold decisions which has mandate of all concerned employees.
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» MERGER OF ASSOCIATE BANK
Posted by P N SIVAKUMAR on 2009-07-09 20:25:14.691553+05:30
WHEN THERE IS A SUPPORT OF STAFF MEMBERS WHO ARE IN FAVOUR MERGER AND THERE IS NO MAJORITY FOR LEFT PARTIES WHY THE MANAGEMENT PUT THE MERGER ON HOLD AND CAN'T BREAK THE WINGS OF UNION(.) THE UNION IS TREATING THE EMPLOYEES AS SLAVES(.) THEY R DOING STRIKE ONLY TO PL UNION THEY CAN'T GO AGAINST UNION WITHOUT MANAGEMENT'S SUPPORT WHO IS DRAGGING THE MERGER PROPOSAL(.) EITHER DO IT OR LEAVE IT ONCE FOR ALL(.) BUT W/O MERGER OFFICIALS HAVE TO STARVE ON THE ROAD FOR BUSINESS(.)
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» merger
Posted by d.s.subramanya on 2009-07-08 13:24:15.216093+05:30
As assosciate Banks has to compete with other large banks in India and aslo other benefits getting by SBI employees will be extended to associate banks and allo net assets will be added to strengthen the SBI to become the stronger Public Sector Bank in India, the merger is a positive step .
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» merger of other associate of sbi
Posted by mohan lal on 2009-07-07 23:10:41.932633+05:30
Small banks like other five associates cannot servive the competition. The employees are also in favour of merger. Why the Govt. is putting on hold of merger of other 5 associate banks. They should be mergered in one go without bothering for few NETAs who have their own interest.
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» merger of state bank of indore with SBI
Posted by n.s.rupawat on 2009-07-07 19:24:08.786935+05:30
most of the staff members are in favour of merger in view of the growing competition with big public sector banks, foreign and private banks. Strong and very large size of balance sheet of SBI will support the small associate bank state bank of indore on moving towards higher growth trajectory, rapid branch expansion will also be possible, regional base of associate bank will support SBI in increasing business, employees will get automatically third benefit of pension for which they are struggling since long to get second option of pension.
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