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.