ABOA in favour of autonomous bank formation

The Associate Banks' Officers' Association (ABOA) in a press release has said that they were in favour of formation of an autonomous bank with the merger of the associate banks (ABs) under SBI.

The ABOA has said that the merger can emerge as a viable, autonomous and national entity. "The merger will enable us to tap the equity market with greater convenience considering the present bottlenecks, especially in case of those ABs which have 100 per cent equity contribution from the SBI," the release said.

According to the association, the amalgamation of the ABs into a single entity will be convenient because all the banks have the same kind of systems and procedures.

The release added that above all the Abs have of late invested heavily in technology and they share the same technology platform.

"The idea has also been supported by the Tanupillai committee and if implemented will unleash the entire untapped potentials of the ABs," the release added.