"The move will be opposed at any cost. The merger proposal is against the interests of employees and will leave many jobless. We have decided to oppose the move for merger of SBS or any other associate bank with SBI," Nadaf said.
Following the Cabinet's clearance, the SBI Subsidiary Bank Amendment Bill, 2008 will now soon be introduced in Parliament.
SBI Chairman, O P Bhatt, had earlier said that the bank planned to complete the merger within a period of two to three months after receiving the necesaary clearance.
"Once we get the clearance it (the merger) could be done within three months," Bhatt had said.
SBS is the smallest subsidiary of State Bank and had posted a net profit of Rs 51.98 crore in FY 08 as against Rs 87.43 crore in the previous fiscal.
The lender has also seen its bad loans mounting in the last financial year.
