Exclusive Q&A With : CR Sasikumar, Managing Director of State Bank of Travancore (SBT)
Updated on: 15 Jun 2016
Interests are lower by 0.5 percent to 1 percent in the SBI on all types of loans.
State Bank of Travancore (SBT),the only public sector bank head-quartered in Kerala, was established in 1945 as the Travancore Bank Ltd. It became a subsidiary of State Bank of India (SBI) under the SBI Subsidiary Banks Act, 1959, enacted by the Parliament. Its newly appointed Managing Director C.R. Sasikumar spoke on the benefits of the proposed merger of the five subsidiaries, including SBT, with SBI.
What is the rationale behind the merger of SBI's subsidiaries with the parent?
It is generally accepted that the multiplicity of about 27 Banks in the Public sector, which contributed to the growth of the economy from the '70s has not been able maintain the growth trajectory in recent times. Despite having many Banks in the Top 1000 Banks in the world, none of the Indian Banks is in the Top 50 Banks of the world.
As part of larger plan orchestrated by the government, the acquisition of Associate Banks by the parent State Bank of India is the first in the series of steps being kicked off to have 4-5 large Banks in the country which will be among the Top 100 Banks of the world.
The customers stand to gain when the SBT merges with the SBI. Interests are lower by 0.5 percent to 1 percent in the SBI on all types of loans. The SBI is also far ahead in facilities including internet banking and mobile banking.
Once the SBI moves into a new technology, it takes one or two years to introduce that same technology to the SBT. We would not have to wait any longer. If a customer has accounts in both the SBI and the SBT, the accounts will be brought under the same identification number. The Reserve Bank of India has directed that two accounts in the same bank should be integrated.
If customers benefit, why is there opposition to this?