The largest lender of the country, State Bank of India has highlighted intentions of merging its remaining associate banks after the completion of its merger with State Bank of Indore.
The bank has said that it is ready to pick up any unsubscribed shares in the upcoming rights issue of its associate bank, State Bank of Mysore. Currently, SBI holds 92.3% stake in State Bank of Mysore.
“We need the capital infusion to help fund our growth. Our parent (SBI) will not only participate in the rights issue but also agreed to pick up any unsubscribed portion of the retail shareholding, though it must be said SBM continues to be a strong favourite among retail investors,” said Dilip Mavinkurve, managing director of SBM.
“I will discuss with the government whether we should go ahead with (a merger of) some more banks and if the answer is yes, we will talk to the remaining five associate banks,” said SBI Chairman O P Bhatt.
State Bank of Indore’s branches will start operating as those of SBI from Aug 27.(25 aug)
After merger with State Bank of Indore, SBI will be left with five associate banks: tate Bank of Travancore, State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Hyderabad.
Mr Bhatt said: “It doesn’t matter whether the associate is listed or not. What matters is how smoothly we can do it.”