The board of SBI and State Bank of Saurashtra had already given their nod for the proposed merger in August last year despite opposition from a section of bank employees.The proposed merger would be the first of its kind among public sector banks.The finance ministry has sought the law ministry’s advice on the merger which is yet to come. Once the advice comes, the proposal would go to the Cabinet for approval
Speaking on the merger, SBI chairman OP Bhat had earlier said “other formalities regarding the merger have been completed and only the government approval remains.” Since State Bank of Saurashtra was a 100% subsidiary of SBI, the merger was only a technical process, he had said.
SBI also convened a meeting to consider merger proposal with other associate banks in January but was postponed later following opposition from the unions.
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