Merger of Banks Likely to be delayed: Arundhati Bhattacharya

Destination-Kerala-SBI

New Delhi: State Bank chairperson Arundhati Bhattacharya has hinted that the merger of its five associate banks and Bharatiya Mahila Bank (BMB) could be deferred until next financial year.

“Probably, by a quarter or so (the merger could be delayed). The reason is we still have to get the government approval and even if we get it now, doing things like merger in the last quarter is never a very wise thing,” she told reporters here the other day.

“Sometimes IT system can impact something else quite unknowingly. So we don’t want to take any risks at the annual closing time,” she added.

Bhattacharya said post the merger of five associate banks and Bharatiya Mahila Bank, the government’s stake in the bank would stand at around 59 per cent.

SBI has around 16,500 branches, including 191 foreign offices spread across 36 countries. Globally, SBI will come at the 45th position in terms of asset size after the merger. SBI first merged State Bank of Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged.