SBI contemplates merging one of its associate banks with itself in 2013

SBI contemplates merging one of its associate banks with sel
State Bank of India (SBI), in order to expand its capital base, is looking to merge one of its five associate lenders with itself in 2013, said Pratip Chaudhuri, Chairman of the bank.

Speaking to the reporters, SBI Chairman said, "We will definitely think of a merger this year. As the capital base expands, we will definitely think. This year I think, the capital position should be comfortable."

Asked which of the five -- State Banks of Bikaner and Jaipur, Hyderabad, Mysore, Patiala and Travancore -- will be merged first, Chaudhuri chose not to point at any particular name. "As far as we are concerned, all five are on the table."

However, bank employees are opposed to mergers as was in case of State Bank of Indore and State Bank of Saurashtra, which were subsequently merged with the parent.

Chaudhuri said SBI will need additional capital if the mergers were to happen and will explore all routes, including a qualified institutional placement (QIP), for this.

"For QIP, we will have to talk to the Government. We think it is theoretically possible. Government stake (in SBI) is 63 per cent, and even if it goes down to 58 per cent, there should not be a problem," he said, adding it can raise up to Rs 10,000 to Rs 14,000 crore through this route.

Read more about: state bank of india
Story first published: Wednesday, April 17, 2013, 9:30 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Thousands of Goodreturn readers receive our evening newsletter.
Have you subscribed?