The Hindu Business Line : Officers' union for merger of SBI associates

THE Associate Banks Officers' Association (ABOA), which had traditionally advocated the independent existence and preservation of the identity and work ethos of each associate bank of State Bank of India, has now demanded the merger of these associate banks into a single entity.

The ABOA is of the view that the advantages of amalgamating the associate banks into a single entity need not be over emphasised. They have the same kind of systems and procedures, with the practice of cross deputation of officials at senior levels over the past two decades.

There also exists a familiarity inter se and redeployment of manpower would not pose a problem.

According to the association, above all, the associate banks have invested heavily in technology and they share the same technology platform.

All these factors lend substance to the idea of uniting these banks to take advantage of group synergy and to evolve as a major player in the banking scenario.

On the shift in stand, the ABOA Chairman, Mr Harsha Vardhan Madabhushi, and Secretary, Mr Peri Subba Rao, said, "We also are abreast of the sign of the times. It is quite some time since we have on the anvil the concept of merger of associate banks to form an independent entity, which can emerge as a viable, autonomous and national entity."

In a press release here on Friday, they said the total assets of associate banks stood at Rs 1,41,441 crore at the end of March 2004, constituting 9.61 per cent of total assets of public sector banks. At this level, the associate banks together were only next to SBI (Rs 4,07,815 crore), while exceeding that of ICICI Bank (Rs 1,25,228 crore), Punjab National Bank (Rs 1,02,332 crore) and all others, they said.

Even in terms of capital and reserves, as well as deposits and advances, the associate banks stand next to SBI and exceed the figures of ICICI Bank, PNB, Canara Bank, Bank of Baroda and others, the ABOA leaders said.

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