The leading car loan lender of the country, State Bank of India has stated its plans of merging its leftover subsidiaries after its merger with State Bank of Indore is over.
The bank has said that it is open to purchasing any unsold shares in the forthcoming rights issue of its subsidiary, State Bank of Mysore. Presently SBI controls 92.3% stake in State Bank of Mysore (SBM).
Dilip Mavinkurve, MD of SBM said, “We need the capital infusion to help fund our growth. Our parent (SBI) will not only participate in the rights issue but also agreed to pick up any unsubscribed portion of the retail shareholding, though it must be said SBM continues to be a strong favourite among retail investors”.
O P Bhatt, Chairman of SBI said, “I will discuss with the government whether we should go ahead with (a merger of) some more banks and if the answer is yes, we will talk to the remaining five associate banks”.
He said: “It doesn’t matter whether the associate is listed or not. What matters is how smoothly we can do it.”
interesting, thanks