State Bank of India (SBI) has got the finance ministry’s clearance to start talks to merge its subsidiary, State Bank of Indore, with itself.
According to bank sources, the green light came after SBI made a strong case for the synergies that would accrue from the merger of associate banks with itself. SBI is learnt to have argued that the merger will help avoid duplication and also benefit the employees of State Bank of Indore. Last year, SBI had merged State Bank of Saurashtra with itself. The government had asked it for an assessment of the benefits from such mergers. Bank sources said after negotiations with the unions, SBI would submit a formal proposal to the Reserve Bank of India for completing the merger process.