SBI should be split

There is a plan to merge SBI’s five subsidiaries with SBI. This is a bad plan. Arundhati Bhattacharya has got one year extension ostensibly to oversee the merger. The extension reflects poorly on the government and other SBI officials.
SBI has lost thousands of crores of rupees if not lakhs of crores of rupees due to bad loans. We do not know the exact figure because we do not know how much amount went into corporate debt restricting, strategic debt restructuring, and loan write-offs. There is recapitalization going on and this year SBI is to receive 7,575 crore rupees. It is to receive more amounts in future. Recapitalization means RBI printing notes and giving to banks. If SBI had been a small or medium bank the4 losses would not have been high.
State Bank of India is too big to fail. It should be split as per plan below.
SBI branches in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura will be State Bank of Shillong.
SBI branches in West Bengal and Sikkim will be State Bank of Calcutta.
SBI branches in Bihar will be State Bank of Patna.
SBI branches in Orissa and Jharkhand will be State Bank of Bhubaneshwar.
SBI branches in Himachal Pradesh and Uttarakhand will be State Bank of Simla.
SBI branches in Jammu and Kashmir will be State Bank of Srinagar.
SBI branches in Punjab will be State Bank of Ludhiana.
SBI branches in Rajasthan will be State Bank of Amber.
SBI branches in Madhya Pradesh and Chhattisgarh will be State Bank of Bhopal.
SBI branches in Gujarat, Dadra and Nagar Haveli, Diu and Daman will be State Bank of Ahmedabad.
SBI branches in Goa and coastal districts of Maharashtra will be State Bank of Konkan.
SBI branches in Vidarbha will be State Bank of Nagpur.
SBI branches in remaining districts of Maharashtra will be State Bank of Poona.
SBI branches in Karnataka will be State Bank of Adyapady.
SBI branches in Kerala, Mahe and Lakshadweep will be State Bank of Cochin.
SBI branches in Tamil Nadu, Pondicherry, Karaikal, Andaman and Nicobar Islands will be State Bank of Madras.
SBI branches in Telangana, Andhra Pradesh and Yanam will be State Bank of Anantapur.
SBI branches in Chandigarh, Delhi, Haryana, Uttar Pradesh and abroad will remain State Bank of India.

Updated: October 2, 2016 — 9:59 am


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  1. SBT (State Bank of Travancore) staff in Kerala are extremely unhappy about the merger. I wonder why they are merging all these when SBI is unable to function efficiently as it is.

  2. SBI was born after the nationalisation of the erstwhile Imperial Bank of India. It’s too big a bank that it needs to be downsized

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