The proposed creation of Telangana State has thrown a spanner in State Bank of India’s plans for merger of its largest associate, State Bank of Hyderabad, with itself.
As it is 100 per cent owned by SBI along with State Bank of Patiala, the merger process would be easier and would not involve any share acquisition from outside.
“However, Telangana State will change the operational dynamics of SBI in terms of branches and overlapping which needs to be looked into.
“Hence, SBH would miss the chances of merger this time,” the executive said.
Harshavardhan, General Secretary of SBH staff association and Associate Banks’ employee association, also hinted that the merger could be delayed.
The bank now is likely to consider merger of either State Bank of Patiala (SBP) or State Bank of Bikaner and Jaipur (SBBJ) which has limited shares under public holding, if it puts off SBH merger for now.
A 100 per cent stake in SBP and absence of local head office for SBI in Rajasthan might work in favour of the merger.
Further, according to sources, the Finance Ministry appears to be now tilted towards a merger with SBBJ.
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As it is 100 per cent owned by SBI along with State Bank of Patiala, the merger process would be easier and would not involve any share acquisition from outside.
“However, Telangana State will change the operational dynamics of SBI in terms of branches and overlapping which needs to be looked into.
“Hence, SBH would miss the chances of merger this time,” the executive said.
Harshavardhan, General Secretary of SBH staff association and Associate Banks’ employee association, also hinted that the merger could be delayed.
The bank now is likely to consider merger of either State Bank of Patiala (SBP) or State Bank of Bikaner and Jaipur (SBBJ) which has limited shares under public holding, if it puts off SBH merger for now.
A 100 per cent stake in SBP and absence of local head office for SBI in Rajasthan might work in favour of the merger.
Further, according to sources, the Finance Ministry appears to be now tilted towards a merger with SBBJ.
CLICK HERE for the complete article
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