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SBI-State Bank of Indore merger talks get nod
October, 22nd 2009

State Bank of India (SBI) has got the finance ministry`s clearance to start talks to merge its subsidiary, State Bank of (Q,N,C,F)* Indore, with itself.

It is learnt that 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.

After negotiations with the unions, SBI would submit a formal proposal to the Reserve Bank of India for completing the merger process.

Shares of the bank closed down Rs 79.95, or 3.24%, at Rs 2,385.30. The total volume of shares traded at the BSE was 650,522 (Wednesday).

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