State Bank of India (SBI), the nation’s biggest lender is all set to merge its five associate banks with itself to fund the economy that is on the cusp of a strong growth like China two decades ago. The combination of the associates will enhance the asset base of SBI to Rs 21.9 lakh crore, and add 5,658 branches to its 15,143 branches. The combined market share will rise to 24%, from 19%, making it a formidable force.
SBI’s five associates are State Bank of Travancore, State Bank of Hyderabad, State Bank of Patiala, State Bank of Bikaner & Jaipur and State Bank of Mysore.
Although consolidation was first mooted about a decade ago, nothing much happened with the staff unions being a stumbling block, and the previous United Progressive Alliance’s policy inertia.
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