State Bank of India (SBI) is unlikely to merge any of its associate banks with itself in 2011, an official close to the development said today.
“I don’t think it (SBI mergers) is high up on the government’s radar as there are more important issues for them at the moment. It is unlikely to happen in 2011,” the official said.
The country’s largest lender merged State Bank of Saurashtra with itself in 2008. It merged State Bank of Indore in 2010.
Since then, the market has been abuzz with speculation about which associate bank SBI will next merge with itself.
“Whether the associate bank to be merged next would be listed or unlisted will be a political decision,” the official said.
State Bank of Travancore, State Bank of Mysore and State Bank of Bikaner and Jaipur are the listed associate banks of SBI. Those unlisted on the bourses include State Bank of Patiala and State Bank of Hyderabad.
On the bank’s proposed Rs 20,000-crore rights issue, the official said SBI was in talks with the government to work out the modalities. “We are still hoping to launch the rights issue this financial year.”
