The merger of State Bank of India (SBI) with its 5 associate banks are at advanced stage. SBI would soon take over its subsidiaries banks and Bharatiya mahila bank (BMB) within the 6 months. No major hurdles exist for the consolidation. We take through your impact of this merger on future recruitment in SBI & associate banks. Impact of Associate banks merger with SBI will no more SBI Associate Banks recruitment.
SBI to Recruit Less in Future
Currently, the vacancies in SBI & its 5 associate banks are filled through separate recruitment. After the merger, all associate banks would be called State bank of India & the names – State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore will no longer exist.
The merged entity will make SBI one of worlds`s top 50 banks with an asset base of Rs 37 trillion (Rs 37 lakh crore), 50+ crore customers, 22,500 branches and 58,000 ATMs.
SBI Associate Banks Recruitment : Here are some important implications:
1) New recruitment will be announced but don’t expect large number of vacancies at least for the next couple of years.
2) There will be no SBI associate banks recruitment. Instead, there will be only one recruitment for the entire SBI group.
3) Many branches of associate banks would be closed to avoid overlap of business & rationalist operations. Moreover it shall also lower operational costs.
4) Current employees wont lose their jobs.They could be assigned to other roles as per the new structure.Many are already fearing transfers if their branches are closed.
…Continue after Advt. ⇓
State Bank of India is india`s largest public sector bank with over 14,000 branches across the nation. It also has 5 banking subsidiaries popularly known as the associate banks – State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore.
Though these subsidiary banks share the same logo of SBI, each has its own headquarters & management team & policies.
Merger to complete within 3 months
To compete against new generation private banks, the Indian government is looking to merge all the subsidaries under a single entity – State Bank of India.
In May 2016, the SBI board cleared a proposal for merger of subsidiary banks and Bharatiya Mahila Bank.They are now waiting for formal approval from the government.
“Once we get the approval of consolidation, we will meet the unions” said the SBI Chairperson Arundhati Bhattacharya when questioned about the next step.
Finance Minister, Arun Jaitley recently said “We are expecting approval shortly”, which shows the union government is also favouring consolidation in banking sector.
After these formalities are over, all 5 associate banks would be merged with SBI in one shot within the next 3 – 6 months .Efforts are also on to bring Bharatiya Mahila Bank started in 2013 into its fold immediately.
SBI managing director, V G Kannan has said “We do not contemplate any loss of jobs. There is no question of any risk and these are unnecessary fears. Recruitment are happening yearly, so we will just end up recruiting less people.”
Will the proposed merger of associate banks with SBI create more job opportunities or limit them cannot be predicted at this moment.