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| SBI to decide on consolidation of associates next month |
| Press Trust of India / New Delhi Jun 10, 2009, 19:10 IST |
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After merging State Bank of Saurashtra with itself last year, country's largest lender SBI would now take a call on consolidating the remaining six associate banks next month.
"We are looking at it constantly, but now new government is there, we are having some interaction. We will formulate our view next month or so what to do with regard to consolidation," SBI Chairman O P Bhatt said after bankers meeting with the Finance Minister.
"Once we get signals, process will not take more than three to six months," he said.
Following the merger of State Bank of Saurashtra in August 2008, SBI is left with six associate banks includes 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.
State Bank of Saurashtra was a 100 per cent subsidiary of SBI.
"We are waiting to get a signal from the government based on that we will take appropriate action, he said.
"I think majority of staff and officials possibility 90 per cent will be in the favour of merger," he added.
Talking about the interest rates, Bhatt said, the bank may reduce it during the month.
"Our bank will decide on lowering interest rates by the end of this month," he said.
The issue will be addressed by the asset liability committee, he added.
Bhatt also said, "PLR is a function of several factors partly it is a legacy issue, partly it is cost resources and yield on advances and partly depends on product mix. Given all that if it is possible we would like to have a softer interest rate regime."
Asked about the credit growth this year, he said, the bank is looking at credit growth rate of 25 per cent in the current fiscal year.
The banking behemoth SBI recorded an impressive 36 per cent net profit of Rs 9,121.2 crore in 2008-09, up from Rs 6,729.1 crore in the previous fiscal. The total income of SBI rose to Rs 76,479.2 crore against Rs 57,645.2 crore a year ago, up by 33 per cent.
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