This refers to the news report “SBI mulls separate company for private banking business” (December 1). With SBI merging all its associate banks one by one, the move to establish a new entity carved out of its existing business segment by spending a large amount of stakeholders’ money is quite surprising. SBI would do well to earmark one of its existing associate banks, equipped with necessary infrastructure and well-trained personnel, to take up this new idea of banking to save cost, time and other resources.
In view of the merger of many associate banks, SBI will have a lot of duplication of the branch network in the vicinity and it is time it took measures to consolidate and standardise the bank’s operations to gain a competitive advantage.
B Venkateswaran, Chennai
