Staff benefit costs may delay merger of associate banks with SBI

Huge costs, particularly relating to employee benefits and provisioning for non-performing assets, might delay the merger of the five associate banks with State Bank of India, sources said.

According to S. Vishvanathan, Managing Director of SBI Associates and Subsidiaries division, the bank would have to fork out around Rs 10,000 crore for merger of all the associate banks with itself. The amount of capital required would depend on the size and business of the individual bank.

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