MUMBAI: SBI today said the corporate branches of its five associate banks will “fold up” into the parent bank as part of network rationalisation after their merger.
“To a large extent, they will fold up into the corporate branches of the parent. As much as 60-70 per cent of the larger value accounts are common and you need only one relationship manager for that,” SBI Managing Director B Sriram told reporters at an event here.
He termed the corporate branches of the associate banks as “low-hanging fruit”, as a more elaborate plan will have to be prepared for the retail branch rationalisation.
SBI Chairman Arundhati Bhattacharya reiterated that the merger will take place this fiscal. The SBI Group has five associates — State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of MysoreBSE -2.75 % and State Bank of Hyderabad.
She also said the merger of Bharatiya Mahila Bank will also be completed this year.
There is no particular bias per se between the unlisted and listed associates, and all the mergers will happen together or in quick succession, she said.
Earlier, speaking at an event to mark the 61st foundation day of SBI, Bhattacharya said the lender is stepping into a “very important year” which will see its size grow by a third due to the merger, which will catapult it into the elite club of the world’s top 50 banks.
SBI’s merger with associate banks, which is being opposed by the unions, will create a banking behemoth with an asset base of Rs 37 trillion or over USD 555 billion.
Kerala Legislative Assembly has passed a resolution condemning the merger plan, saying the State Bank of Travancore is core to the state’s identity, which will be lost with the merger.
