Presenting a report card on merger trajectory, SBI
chairman Arundhati Bhattacharya
said 594 branches merged till August 6 and expect to achieve branch merger target by end of September 2017.
Bank has the technical capacity and given the current pace of merger of branches, it’s possible to accelerate the process, said its managing director (associates and subsidiaries) Dinesh Khara.
The bank expects savings from rationalisation
of branch and administrative offices in excess of Rs 1,160 crore per annum. Bank paid Rs 473 crore as ex-gratia amount to 3,569 eligible employees under the Voluntary Retirement Scheme (VRS), which is expected to result in salary savings of Rs 400 crore per annum. After the merger of Associate banks
and Bharatiya Mahila Bank
in April, country’s largest bank had indicated it will take about 18 months to rationalise its branch network. 8,616 SBI
employees are likely to be redeployed.