SBP, SBH on merger list: SBI

Source :TNN, Apr 27, 2011, 07.03am IST

 State Bank of Patiala and State Bank of Hyderabad are expected to be next in line for merger with State Bank of India, SBI chief Pratip Chaudhuri said on Tuesday.

Chaudhuri, who was in the national capital to attend the review meeting of state-run banks convened by the finance ministry, said both associate banks were 100% owned by SBI and it would provide some flexibility if these two banks were taken up for merger.

"It is easier to merge when you have 100% ownership," Chaudhuri told TOI. He said the discussions were on and a decision was expected soon.

SBI expects its merger with State Bank of Indore to complete by March

by Harish Dhawan on Wed, 02/10/2010 - 05:37.

State Bank of IndoreThe country’s largest Bank,
State Bank of India expects its merger with State Bank of Indore
to be completed by the end of this financial year.

This will be a second such merger with its associate bank
after State Bank of Saurashtra completed its merger with 
SBI in August 2008.

After this merger there will be five associate banks ob the SBI
left namely State Bank of Bikaner and Jaipur, State Bank of Travancore, 
State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.

The central board of the bank and later the government of India gave
its approval for the proposed merger. The State Bank of Indore has
recorded a net profit of Rs. 279 crore in 2008-09. SBI holds
about 98 per cent stake in the bank.

In another development, SBi has hinted that the lending rates 
may rise from the second quarter of fiscal 2010-11. 
Chairman of SBI O P Bhatt said "So far as bank lending rates are
concerned, I do not expect lending rates going up before May-June."

Recently RBI raised its key rates in its policy review which will reduce
the liquidity by Rs 36,000 crore from the monetary system.

SBI announced the launch of a new scheme called Defence Salary Package-
Navy to offer services for free or with concessions
to the officers and other naval personnel.

The bank will offer free drafts, free cheque book, 
free fund transfers and free ATM cards.
 

LS approves merger of State Bank of Saurashtra with SBI

14 Dec 2009, 2017 hrs IST


NEW DELHI: The Lok Sabha on Monday post facto put its seal on merger of the State Bank of Saurashtra (SBS) with State Bank of India (SBI) amid opposition from Left parties

"The pay and allowances and service conditions of the employees of SBS will not be altered to their disadvantage," Minister of State for Finance Namo Narain Meena said as the House approved the two bills to given effect to the merger that took place last year.


The bills to repeal the State Bank of Saurashtra Act and amend the SBI (Subsidiary Banks) Act were passed by voice vote.


Meena also said no branches of SBS are being closed as a result of the merger. "There should be no apprehension on this count", he said.


The associate bank was merged with the SBI in October 2008 following resolutions passed by the boards of both the banks.


The amendments, though a legislative formality, was opposed by CPI-M and CPI which saw in the merger a larger design to privatise the state-owned banking sector.


"The bill has a hidden agenda to consolidate state-owned banks into a monolith...the purpose for which is privatisation of the bank," A Sampath (CPI-M) said, while opposing the bills.


Opposing the bills, Prabodh Panda (CPI) demanded that government should have a comprehensive debate on its "agenda" for merging associate banks with the SBI.

Thousands of bank employees, he added, would go on strike on December 16 to protest against such merger and consolidation in the banking sector.

Jagada Nanda Singh (RJD) regretted that government was pursing the banking policy only to protect and promote the interest of large borrowers.


Bhartruhari Mahtab (BJD) wanted to know whether there was a difference of opinion between the Finance Ministry and Reserve Bank over consolidation in the banking sector.


T K S Elangovan (DMK) said the merger would not be in the interest of either employees or shareholders or customers.


Sumitra Mahajan (BJP) said it was incorrect on the part of the government to merge associate banks with the SBI as the exercise would not benefit anyone.


The regional character of the associate banks, he said, should be maintained to further the goals of financial inclusion and promote banking in all parts of the country.


P C Chacko (Cong) said that mergers have become the order of the day and would help SBI to compete with international players.


The merger, he said, was accepted and approved by the boards of the two banks.

Shailendra Kumar (SP) said people have emotional attachment with the banks and the merger would end the regional character of the associate banks.

Source:Loksabha News

Will SBI consider State Bank of Indore’s share swap ratio?

 Dec 04, 2009 at 16:16 

Reports suggest that the State Bank of India 

 panel is likely to consider State Bank ofIndore’s

 share swap ratio. 

SBI plans to offer 34 shares

 for every 100 State Bank of Indoreshares.

Meanwhile, the government has said that it would play a 

supporting role in the public sector banks' consolidation.

 “Banks should themselves initiate any merger plans. 

There isno specific direction to any bank to consider a 

merger with another.” 

All state-owned banks posted profit

 in last three fiscal years.

Source : Moneycontrol

SBI gets govt nod for acquiring State Bank of Indore

4 Dec 2009, 1751 hrs IST,

NEW DELHI: The Indian government has given approval 
to State Bank of India to initiate the process of 
acquiring one of its associate lenders,
State Bank of Indore, the junior finance minister
told lawmakers on Friday.

SBI, India's largest bank, has already acquired one
 of its subsidiaries - State Bank of Saurashtra. It has six
other associate banks and plans to take over all associates
 eventually. "SBI has already initated the process,"
Namo Narain Meena told the lower house of parliament
in a written reply.

State Bank of Indore had informed the Bombay Stock 
Exchange on Oct 31 that its board had approved the 
proposed acquistion of the bank by SBI, including a
share exchange ratio proposing allotment of 34 equity
 shares of SBI in lieu of every 100 equity shares of
State Bank of Indore.

The minister said bank employees' unions have expressed 
apprehensions over the proposed consolidation in the
banking sector, particularly state-run banks.
"Some of the apprehensions are closing of bank branches,
 retrenchement of existing employees, regional sentiments
about some particular banks, etc," he said.

He also said government has not given "direction to any
specific bank to consider proposal for merger or
amalgamation with a particular bank."
The initative for consolidation had to be taken
 by the managements of the banks and government
 would play a supportive role as the common stakeholder.

 Source:REUTERS