Merger of State Bank of Indore to be complete by March: Bhatt

The country’s largest lender, State Bank of India (SBI), today said that the merger of State Bank of Indore with itself will be completed by the end of this fiscal.

“Merger will be complete before this financial year... by March,” said SBI Chairman O P Bhatt here. This will be second such merger of its associate banks. In August 2008, the bank had merged State Bank of Saurashtra with itself.

Post merger, the SBI will be left with five associate banks namely State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.

Among these, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed on bourses.

'RBI has no objections to teaser rates'
The today asserted that the Reserve Bank (RBI) has not objected to "teaser" home loan rates, which had kicked up a storm in the industry. Banks, led by SBI, under special schemes offer home loans at lower interest rates for the first few years of the credit period, which is referred to as "teaser" rates. "They (RBI) have not objected.... SBI would not do anything which RBI objects...No RBI has not objected," Bhatt said here. The RBI has been worried about teaser rates as it is concerned that borrowers may find repayment difficult once the interest rates go up. RBI Deputy Governor Usha Thorat had said, “Teaser rates by banks is a cause of concern.

Banks must ensure that borrowers can service higher rates when rates return to normal.” Yesterday, Thorat in response to further progress on the regulatory front on teaser rates had said, “Banks should have taken whatever message was given.”