"We are awaiting government clearance. State Bank of Saurashtra merger is in the pipeline and there is no delay. Once we get clearance, it could be done within three months," SBI Chairman O P Bhatt told reporters here.     

The Law Ministry has already given a go ahead to the merger of State Bank of Saurashtra with its parent entity.     

According to sources, as per the advice of the Law Ministry, SBI Act 1955 should be amended for the merger.     

They also said that if the merger was done without the amendment to the Act, it could lead to strike by employees.     

Based on the advice of the Law Ministry, the Finance Ministry would prepare note and send the proposal for the Cabinet approval.    

 The Board of SBI and State Bank of Saurashtra had already given their approval for the proposed merger in August last year despite opposition from a section of bank employees.     

The proposed merger would be the first of its kind among the public sector banks.     

Since State Bank of Saurashtra is a 100 per cent subsidiary of SBI, the merger is only a technical process if the Cabinet clears it.     

Bhatt had earlier said that after the merger of SBS, the process of amalgamation of other associate banks would begin afresh.     

The other six associates are State Bank of Travancore, State Bank of Patiala, State Bank of Indore, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Hyderabad.