Mumbai: State-run banking behemoth SBI has set up a crack team to prepare a framework for amalgamation of five associate banks with itself, even as the political opposition to the proposed move is gaining ground and the government approval is still awaited.
“A team of 15-20 members has been set up and it has started working on the framework for the merger. The team is headed by a general manager and there are a few deputy general managers,” a source said.
The team has been formed under the supervision of associate and subsidiaries department, which is being headed by managing director V.G. Kannan.
“If everything works fine, in 3-4 months the process is likely to begin,” he said.
In May, the bank’s board had submitted a proposal to the government for merging its five subsidiaries and first women-oriented lender Bhartiya Mahila Bank with itself.
“This merger discussion is purely exploratory at this stage and is not certain. A proposal seeking an in-principle approval to start negotiations with associate banks will be submitted to the government,” SBI had said in a statement issued after its board meeting last month.
State Bank of India has five associate banks — State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
