Merger is only technical: SBT MD

With the State Assembly passing a resolution against the merger of the Kerala-headquartered SBT with the SBI, the acquisition of five associate banks by the SBI has started acquiring political overtones. It is learnt that Members of Parliament from Kerala might raise the issue in the ongoing monsoon session of the Parliament.

The merger move, which is likely to be finalised before the end of 2016 is expected to pitch the SBI into the top 50 banks in the world. The five associates themselves now have a business of Rs.9 lakh crore against the parent’s Rs.32 lakh crore, as per audited figures at the end of March 2016.

Recently in an interview with The Hindu , SBT Managing Director C.R. Sasikumar had said that customers stood to gain when the SBT merged with the SBI. “Interests are lower by 0.5 per cent to 1 per cent in the SBI on all types of loans. The SBI is also far ahead in facilities including internet banking and mobile banking. Once the SBI moves into a new technology, it usually takes one or two years to introduce the same in SBT.”

SBT is no doubt a household name in Kerala and people have a sentimental attachment to it. But, according to Mr. Sasikumar it must not be forgotten that 4/5th of the SBT is owned by the SBI and officials from SBI have led SBT for decades.

“The acquisition is only technical, as the group runs on common technology platform, have similar policies and procedures. Apprehensions about merger are more of an emotional response than a rational one,” Mr. Sasikumar added.

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Printable version | Oct 27, 2020 9:42:10 AM |

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