The editorial, “Mergers do not help” (May 23), projects the current state of the State Bank of India (SBI) after the merger. The five merged entities have cast a heavy blow to the SBI, making it post losses.
Immediately after a merger, the outcome would be the arithmetical sum of the items in the entities. Except absorption of balance sheet, no strategy could be so far implemented. Adversities of the merged entities cannot disappear with the merger; these get added to the absorbing entity. Hence, there is no surprise in the numbers rolled out by the SBI.
The actual journey of a
