State Bank of India merges with associate banks
The State Bank of India (SBI) consolidates to create a major heavyweight on the domestic and global scene
India’s government has given the green light to the State Bank of India (SBI) to merge with its five associate banks.
SBI is already among the largest an India and a sizeable international player, with the total assets of $400 billion and a network of 16,500+ branches (including over 190 international locations across 36 countries). The five associate banks will add 6,000 branches.
The associate banks are State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.
The consolidation process at SBI has been underway for a number of years, with State Bank of Saurashtra and State Bank of Indore incorporated into the main bank in 2008 and 2010, respectively.
SBI has been trying to integrate other banks since then but none of the attempts have come to fruiting until now, due to various regulations and the lack of capital.
However, SBI is now ready to proceed with this major integration and the full team is now in place to steer the project, Banking Technology understands.
In terms of technology, the domestic operations of SBI and its associate banks are already standardised on TCF Financial Solutions’ Bancs core banking platform.
SBI’s international locations also have a common core platform, Infosys’ Finacle.
A few years back, SBI and its associate banks also implemented a standard platform for lending operations – Nucleus Software’s FinnOnne – Banking Technology understands.
