"I hope that the process of merger will be completed without any hurdles. We have completed all the necessary formalities in this regard. The government is also considering whether there is any need for amendment in the existing merger laws or not in this regard," Bhatt told reporters last night after inaugurating a loan relief camp under the Centre's loan waiver scheme at Navada Panth rural branch of the bank near here.

After the merger of SBS, the process of amalgamtion of other associate banks would begin afresh, he said. "It is not correct to say the banks are facing liquidity crunch. But, definitely their condition is a bit tight. It doesn't mean that it has affected the banking operations as the Reserve Bank of India is keeping an eye on the entire situation," he added.

Bhatt said he doesn't see any possibility of reducing home loan's interest rates in the near future due to the high inflation, rising crude oil prices and tight liquidity conditions of the bank.

He said SBI alone would waive-off loans of Rs 1000-2000 crore under the scheme and added that the bank would strive to complete the job within a definite time frame.

However, the exact amount will be known by the month-end only as the government has fixed June 30 deadline for the purpose. It can be recalled that the Centre has announced the loan waiver scheme in the Union Budget (2008-09), under which agri-loans of Rs 60,000 crore will be waived off.