NEW DELHI: Terming the government’s decision to go ahead with the merger of SBI and its associate banks as a “right idea”, eminent economist Meghnad Desai has said other PSU banks should also be merged from the current 24 to 3-4 large banks.
“The consolidation of the State Bank of IndiaBSE 1.65 % is very much the right idea. The other PSU banks should also be merged from the present 24 (excluding SBI and its partners) into 3-4 large banks,” the India-origin British politician told PTI.
The Union Cabinet last month gave the go-ahead to the proposal of merger of SBI and its subsidiaries that could make the state-owned lender a bank of global size.
SBI has five associate banks — State Bank of Bikaner and JaipurBSE 1.50 %, State Bank of TravancoreBSE 1.05 %, State Bank of Patiala, State Bank of MysoreBSE 1.73 % and State Bank of Hyderabad.
Chairman Arundhati Bhattacharya had also termed the proposed merger as a “win-win” for both sides.
Among the associate banks, State Bank of BikanerBSE 1.50 % and Jaipur, State Bank of Mysore and State Bank of Travancore are listed.
SBI has close to 16,500 branches, including 191 foreign offices spread across 36 countries.
