Kerala govt opposes merger of State Bank of Travancore with SBI

This post was about coming merger of remaining 5 state banks with SBI. It looked at the brief history of these state banks and their journey from being a Maharaja driven bank to a state bank.

Now, the Kerala govt opposes this merger and wants the State bank of Travancore to remain a part of Kerala:

The Kerala government is against the merger of State Bank of Travancore (SBT) with State Bank of India (SBI), Chief Minister Pinarayi Vijayan on Thursday said.

This is the first political opposition to the proposed merger of SBI associate banks with the parent.

“People of the state consider SBT as a bank of Kerala and the government also has the same view. We want SBT to remain as it is,” Vijayan said at a meet-the-press programme Thiruvananthapuram.

The state co-operative bank would then become “a big bank” with financial capacity equal to that of any scheduled bank in the state. “We are seriously considering it,” he added.

Hmm…

Actually we are going in circles in banking. On one hand govt is busy creating new small finance banks wanting to promote local development. But on the other hand it wants the existing old local banks to close shop and get merged with a bigger bank. It is all so confusing…

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