It has been reported that State Bank of Patiala is likely to merge with its parent bank State bank of India. Bank reported that they have no issues with the merger, one of the five associates of the bank are likely to merge with the SBI this fiscal.
The government-run State Bank of India has five associates -- State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad. State bank of Patiala is the first one to be merged with SBI soon. But Mr. Rangan clarified that neither the government nor the SBI has yet approached his bank for the possible merger.
He also said banks must be recapitalised and strengthened before a take-over. It was noticed that all commercial banks financials are under stress. Non-performing assets have risen sharply in the past five years. The associate banks of the SBI are having nearly 75000 employees and different working conditions and environment, they merger of the bank is not so easy.