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SBI – Associates ‘mega’ merger

Bhavya Rastogi

 IIM Shillong



Consolidation of banks is in the air again, with State Bank of India (SBI) set to merge with five of its associate banks – State Bank of Bikaner & Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Mysore (SBM), State Bank of Patiala (SBP) and State Bank of Travancore (SBT). The merger of SBI associates is part of an ambitious plan of the Government to set up one large Indian bank in the consortium of global banking colossus. Since, India has a fragmented domestic banking industry, the proposal of the Government is that India needs stronger banks, not scores of banks. The eventual intention of the Indian government is to reduce the number of PSBs from the current 27.  In the past too, the SBI has…

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