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SBI merger: A test case

Without a hands-off approach, PSU mergers won't work

Devangshu Datta 

Devangshu Datta State Bank of India’s (SBI’s) merger with its five associates and Bharatiya Mahila Bank will be worth careful observation. SBI hopes to complete the formal merger in three months. The real task of extracting cost savings and building positive synergies will take longer. The most obvious cost savings will come from eliminating duplication. Savings are estimated to amount to about Rs 2,700 crore per annum starting 2018-19, though there will be higher costs in this financial year. Some 1,500-1,600 branches can be shut, and commensurate employee strength downsized.  In ...

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First Published: Sun, April 09 2017. 22:09 IST
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