Notwithstanding the ?strong reservations? raised against the merger by employees unions, the State Bank of Hyderabad (SBH) is all set to take a formal decision on merge with its parent State Bank of India (SBI). The bank?s board is expected to discuss the merger issue in its next meeting slated on January 25, SBH MD Amitabha Guha hinted. ?There is a possibility that the merger issue will be discussed in the board meeting,? Guha said. But the agenda is yet to be finalised, he quickly added.
SBI board of directors, a 100% stakeholder in SBH, is also expected to take a view on the merger in its meeting on January 24, sources said. Guha said, ?The possibilities of a merger are more feasible and evident now than two years ago. However, it would be difficult to specify the time schedules at this point of time,? he added. The SBH MD said that the mood in government and the markets favour consolidation in the banking industry. Hence, it is the right time, he added.
Clarifying the employees? opposition to the merger proposal, Guha said that the banks have assured that the service conditions will be made ?on par? with that of SBI. When contacted, the workmen director on the SBH board M Harshavardhan told FE that the unions have decided to boycott the board meeting on January 25. ?We (workmen directors) will not attend the board meeting in protest,? he said.