State Bank of India (SBI) is likely to put on hold its plan of merging with some of its associate banks as it does not see value in the move in the current fiscal.
The subsidiaries include State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore, State Bank of Patiala or State Bank of Hyderabad.
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The bank may also put on hold its merger plan with all of its five associate banks, and allow some of the banks to retain their present structure, reports The Economic Times.
However, it is open to assessing merger options in the next fiscal, subject to approval from the government, RBI, SBI board and the identified associate bank.
An SBI executive said: "We are committed towards merger in the longer run. But, before that, we need to strengthen some of these banks in terms of balance sheet and work out the human resource issues."
SBI was expected to merge at least State Bank of Patiala or State Bank of Hyderabad in the current fiscal, but rejected the plan considering its long-term capital plans under the Basel III norms.
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By GlobalDataEarlier in 2008, SBI merged with its associate State Bank of Saurashtra, and two years later it absorbed State Bank of Indore.
