State Bank of India and its associate State bank of Indore merger is expected to be complete by march 2010.
The board of directors of State bank of Indore has approved the acquisition of the bank by State bank of India under section 35 of the SBI Act,1955. RBI has also given its nod to the proposed merger. The merger awaits the Centre's consent.
The merger of the two banks entails lot of procedures besides merger of data and balance sheets. Matters concerning post-merger seniority levels, promotions and those related to trade unions and their demands also need to be addressed.
SBI has already decided the share swap ratio for the merger according to which 34 SBI equity shares of Rs. 10 each would be provided in lieu of 100 SBIN equity shares of Rs. 10 each.
A grievance redressal mechanism has also been set up for SBIN shareholders in case they have any objection related to the share swap ratio.
Bank employees are unhappy with the consolidation in the industry. Around 4 lakh officers and employees have decided to go on a strike on 16th December to protest against the proposed merger of State bank of Indore with its parent company, State bank of India and other possible mergers in the industry.