SBI told to absorb unlisted arms
09 Apr 2007
New
Delhi: The finance ministry has asked the State Bank
of India (SBI) to explore the possibility of merging its
unlisted subsidiaries with itself.
The government has asked the country''s biggest bank to look at merging unlisted subsidiaries, including State Bank of Hyderabad, State Bank Of Indore, State Bank of Patiala and State Bank of Saurashtra. This is because the government feels the process of merging an unlisted subsidiary would be easier.
More so, since all the unlisted subsidiaries are wholly owned by SBI, the process would be much faster even from the regulatory aspect.
As a first step, SBI has created a unified IT platform and ATM network. Although the move to have single IT platform, ATM network and accounting in all SBI subsidiaries was aimed at uniform technological upgradation, it would help in the process.
Officials said the merger with the unlisted subsidiaries will not lead to a large-scale branch rationalisation due to diverse areas of operation. It would, in fact, add value in terms of business as well as enhancing financial acumen and reach of SBI.
