SBI chief Rajnish Kumar says more mergers not advisable as the bank is already big

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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It is not advisable for State Bank of India to take part in further merger process as it is already big, Rajnish Kumar, chairman of the bank, told The Indian Express.

Kumar, while speaking to Express, said that further mergers will not be good from the risk management perspective.

“SBI has already become big. My view is that from a systemic risk point of view, it won’t be advisable that SBI grows through merger or acquisition. Our normal growth and maintaining of market share is a different matter. You can’t have a banking institution, which already has over 20 per cent market share (go for more mergers) … from the risk management perspective also, it’s not good,” Kumar was quoted saying in the report.

The bank had recently seen two mergers- Bharatiya Mahila Bank in last year and that of its Associate banks earlier.

As per the report, many mergers in the banking sector have been forced ones. Many see SBI as the best candidate for these mergers, given its size and strength.

However, with officials speaking about the need for consolidation in India’s banking sector, speculations had emerged of further mergers to SBI, said the report.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow