"I hope that the process of merger will be completed without any hurdle. We have completed all the necesary formalities in this regard and now after the central government is mulling over several legal issues after which it will be completed," Bhatt told reporters last night after inaugurating a loan relief camp under the Centre's ambitious loan waiver scheme at Navada Panth rural branch of the bank near here.     

"The government is also considering whether there is any need for amendment in the exisiting merger laws or not in this regard. Now we are waiting for government's nod on the issue," he said.     

After the merger of State Bank of Saurashtra, the process of amalgamtion of other associate banks would begin afresh, he said.     

To a question he said that it is not correct to say that the banks are facing liquidity crunch. But, definitely their condition is bit tight. It doesn't mean that it has affected the banking operations as the Reserve Bank is keeping an eye on the entire situation.     

On the issue of reduction in housing loan's interst rates, he outrightly rejected it on the ground that at present inflation in the country is around 8 per cent, prices of crude oil is on the rise and the banks are admitting that their condtion is tight, therefore, it is not possible for him to assure that the interst rates in the housing sector will be reduced. "I don't see any possibility of it in near future," he added.