New Delhi: Terming consolidation in public sector banks a "long drawn process", Banks Board Bureau (BBB) chief Vinod Rai said it should gather momentum in 2-3 years.
"Finance Minister in his Budget speech talked about consolidation of banks. Prime Minister has made references to the idea that there should be 6 or 8 large banks. The entire process is being thought of but it's not that it is going to materialise in two or three months," he said at an event here.
"This is long drawn process," Rai said, adding that in the next 2-3 years, it should gather momentum. "A lot of work has to be done. Once the road map is ready it will be rolled out," he added.
BBB is an advisory body set up by the government last year ahead of Budget to recommend names for appointment as directors in public sector banks and advise on ways to raise funds and mergers and acquisitions, among other areas.
On the recommendation of BBB, the process of merger of five associate banks of SBI with the parent is underway. Bharatiya Mahila Bank is also being merged with SBI.
The merger would make SBI a global-sized bank and make it amongst the top 50 lenders in the world, with an asset base of Rs 37 trillion or over USD 555 billion, with 22,500 branches and over 58,000 ATMs and more than 50 crore customers. SBI has three listed associate banks - State Bank of
Bikaner and Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT) and two unlisted associate banks — State Bank of Patiala and State Bank of Hyderabad.
