|Posted by drgorg on December 6, 2009 at 10:44 AM|
SBI to Takeover SB Indore SOON
News says that, The Indian government has given approval to State Bank of India to initiate the process of acquiring one of its associate lenders,State Bank of Indore, the junior finance minister told lawmakers on Friday.
SBI, India's largest bank, has already acquired one of its subsidiaries - State Bank of Saurashtra. It has six other associate banks and plans to take over all associates eventually. "SBI has already initated the process," Namo Narain Meena told the lower house of parliament in a written reply.
State Bank of Indore had informed the Bombay Stock Exchange on Oct 31 that its board had approved the proposed acquistion of the bank by SBI, including a share exchange ratio proposing allotment of 34 equity shares of SBI in lieu of every 100 equity shares of State Bank of Indore.
The minister said bank employees' unions have expressed apprehensions over the proposed consolidation in the banking sector, particularly state-run banks. "Some of the apprehensions are closing of bank branches, retrenchement of existing employees, regional sentiments about some particular banks, etc," he said.
He also said government has not given "direction to any specific bank to consider proposal for merger or amalgamation with a particular bank." The initative for consolidation had to be taken by the managements of the banks and government would play a supportive role as the common stakeholder.
(source Economic Times 4 Dec 2009,)
In this era of overtaking, aquisition, mergers and amalgumation, what do you think about the Banking scenario in comming 5- 10 years..? will our economy be strong enough to absorb the SHOCK of recession, as it could in recent days, in Future also. when our Banks are merged and Stake of Govt. is reduced as being done now?
Give your views and comments,
And have a very festive time till then