The acquisition of State Bank of Indore by State Bank of India (SBI) last year was in public interest, the Rajya Sabha was informed on Wednesday.
The merger was in “overall public interest,” Namo Narain Meena, minister of state for finance, said during a debate over the SBI (Subsidiary Banks) Amendment Bill, 2010, in Rajya Sabha.
“Now, they (State Bank of Indore customers) can deposit and withdraw money from all 14,000 SBI branches,” he said.
The upper house later passed the bill, seeking to omit all references to State Bank of Indore, acquired by SBI in July last year. He assured members the interest of employees would be protected.
He added banks were doing a “commendable job”, with their performance being unaffected during the global recession.
“The credit goes to the Reserve Bank of India and the banks alike,” he said.