State Bank of India’s board gave it’s go ahead to the merger of State bank of Saurashtra (SBS) with itself subject to the approval of the Government and Reserve Bank of India in accordance with State Bank of India Act,1955.
State Bank of India Managing Director T.S.Bhattacharya said State Bank of Saurashtra is the smallest of the other seven associates(State Bank of Travancore, State Bank of Mysore, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Indore and State Bank of Patiala.) of SBI and based on this experience we will look to restructure the whole group.
SBS has 460 branches and the merger would help eliminate duplication of branches in the same area.The merger would help SBI consolidate its position as India’s biggest bank and widen the gap with nearest rival ICICI Bank. With 9,579 branches, SBI has total assets of Rs 5,66,565 crore and posted a net profit of Rs 4,541 crore as on March 31, 2007. ICICI Bank had assets of Rs 3,44,658 crore and posted a net profit of Rs 3,110 crore in 2006-07.