FinMin awaits Law Ministry advice on SBI-SBS merger
The Finance Ministry is awaiting advice from the Law Ministry before a proposal to merge State Bank of Saurashtra wth the parent State Bank of India could be sent to the Cabinet for its approval.
By PTI |
NEW DELHI: The Finance Ministry is awaiting advice from the Law Ministry before a proposal to merge State Bank of Saurashtra wth the parent State Bank of India could be sent to the Cabinet for its approval.
The Finance Ministry has sought Law Ministry's advice on the merger which is yet to come, said official sources. Once the advice comes, the proposal would go to the Cabinet for approval, sources said.
The Board of SBI and State Bank of Saurashtra had already given their approval for the proposed merger in August last year despite opposition from a section of bank employees.
The proposed merger would be the first of its kind among the public sector banks.
Speaking on the merger SBI Chairman O P Bhatt had earlier said "other formalities regarding the merger have been completed and only the government approval remains."
Since State Bank of Saurashtra was a 100 per cent subsidiary of SBI, the merger was only a technical process, he had said.
SBI also convened a meeting to consider merger proposal with other associate banks in January but was postponed later following opposition from the unions.
The six associates are State Bank of Travancore, State Bank of Patiala, State Bank of Indore, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Hyderabad.
The proposal of merger of associate banks with SBI is a part of the government's efforts to consolidate the sector.
The country's largest lender, SBI, which has over 10,000 branches in the country, has posted a net profit of Rs 6,729.12 crore, a 48.18 per cent growth during 2007-08 over the year-ago period.
The total income for 2007-08 rose to Rs 57,645.24 crore from Rs 44,007.59 crore in the previous fiscal.
The Finance Ministry has sought Law Ministry's advice on the merger which is yet to come, said official sources. Once the advice comes, the proposal would go to the Cabinet for approval, sources said.
The Board of SBI and State Bank of Saurashtra had already given their approval for the proposed merger in August last year despite opposition from a section of bank employees.
The proposed merger would be the first of its kind among the public sector banks.
Speaking on the merger SBI Chairman O P Bhatt had earlier said "other formalities regarding the merger have been completed and only the government approval remains."
Since State Bank of Saurashtra was a 100 per cent subsidiary of SBI, the merger was only a technical process, he had said.
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SBI also convened a meeting to consider merger proposal with other associate banks in January but was postponed later following opposition from the unions.
The six associates are State Bank of Travancore, State Bank of Patiala, State Bank of Indore, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Hyderabad.
The proposal of merger of associate banks with SBI is a part of the government's efforts to consolidate the sector.
The country's largest lender, SBI, which has over 10,000 branches in the country, has posted a net profit of Rs 6,729.12 crore, a 48.18 per cent growth during 2007-08 over the year-ago period.
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The total income for 2007-08 rose to Rs 57,645.24 crore from Rs 44,007.59 crore in the previous fiscal.
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